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Samantha Karp time value money - The future value of an...

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Samantha Karp Time value money Future value is measured by the value of an amount that grows at a certain interest rate over a period of time. You would use future value concept to determine the future value of a single amount. Let’s say to figure out you would have in an account at the end of the investing years. The present value of a future sum is the amount that must be invested today at compound interest to reach a desired sum in the future.
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Unformatted text preview: The future value of an annuity refers to the amount that one will accumulate by making regular payments at interest over a period of time. The present value of an annuity cannot be easily calculated arithmetically as can the present value of a future sum. Rather, the present value of each payment must be calculated by dividing each by 1 plus the discount rate rose to the power of the number of periods involved....
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