Introduction to Valuation: The Time Value of Money - Present Value and Discounting
4 important questions on Introduction to Valuation: The Time Value of Money - Present Value and Discounting
What is the present Value (PV) in single period case? When you have 10% intrest and wnat to get 1$ per year
Present value = $1/1.1=0.909
This is what we call discounting it back to the present
(discount = calculate the present value for some future amount)
Pic explains more about
When looking at present values for multiple periods when you know 1000 in 2 years. If you can earn 7% how much do you have to invest to make sure you have the 1000 when you need it?
Are calculating present values quite similar to calculating future values?
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
This is the present value How do you write this in a simple way?
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
![Trustpilot Logo](/images/design_2020/lp/clp-trustpilot-en.png)