Present and Future Value Questions
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It is known and an equal amount of money received in the future will be worth less than the same amount of money received today. In this paper the writer tackles five different questions set by the student, concerning this concept, which is referred to as the time value of money. The questions include calculating future value of a fixed amount, calculating the current value of future revenues, and assessing the amount required in order to achieve future targets, with both regular payments and a single investment. All calculations are shown and fully explained. Two sources are cited in the bibliography of this 13 page paper.