The document discusses the time value of money, which states that money available at the present time is worth more than the same amount in the future due to its potential to earn interest. It explains present value, which determines the current worth of future cash flows, and future value, which predicts the worth of an investment in the future if interest is earned and compounds over time. Examples are provided to illustrate how to calculate present and future value using time value of money formulas.
The document discusses the time value of money, which states that money available at the present time is worth more than the same amount in the future due to its potential to earn interest. It explains present value, which determines the current worth of future cash flows, and future value, which predicts the worth of an investment in the future if interest is earned and compounds over time. Examples are provided to illustrate how to calculate present and future value using time value of money formulas.
The document discusses the time value of money, which states that money available at the present time is worth more than the same amount in the future due to its potential to earn interest. It explains present value, which determines the current worth of future cash flows, and future value, which predicts the worth of an investment in the future if interest is earned and compounds over time. Examples are provided to illustrate how to calculate present and future value using time value of money formulas.
The document discusses the time value of money, which states that money available at the present time is worth more than the same amount in the future due to its potential to earn interest. It explains present value, which determines the current worth of future cash flows, and future value, which predicts the worth of an investment in the future if interest is earned and compounds over time. Examples are provided to illustrate how to calculate present and future value using time value of money formulas.