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Homework answers / question archive / Write the Relations between Future value and present value? And And how each one of them affects ?______ i attach sample answer for some student to take the idea , pleaes not take the same answer , urgent please):Visible to participants on this course The PV and FV Measures the change in the value of money over a certain period of time The future value basically measures the nominal future sum of money and how much it will be worth in the future given a certain discount rate The Present value measures the value of money at the current point of time given a certain discount rate as well The PV and FV have a direct relationship as the FV is calculated by multiplying the present value by the accumulation function
Write the Relations between Future value and present value? And And how each one of them affects ?______
i attach sample answer for some student to take the idea , pleaes not take the same answer ,
urgent please):Visible to participants on this course The PV and FV Measures the change in the value of money over a certain period of time The future value basically measures the nominal future sum of money and how much it will be worth in the future given a certain discount rate The Present value measures the value of money at the current point of time given a certain discount rate as well The PV and FV have a direct relationship as the FV is calculated by multiplying the present value by the accumulation function. So when One increase the other one increase. If the Present value increase, means the future value will increase as well assuming that the Interest rate and number of periods remains constant PV and FV are related and they reflect compounding interest as it is hard to use the simple interest and it is explained by the following formula FV=PV(1+r)^n
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