Business Finance
What is the difference between future value and present value

### Question Description

What is the difference between the accumulated amount (future value) and the present value of an investment?  Give examples of each.

## Final Answer

FV=PV(1+rate/100)^Time

You invest 10 dollars today at 10 percent interest per year.

The present value is 10 dollars.

The future value is: FV=10(1.1)^1= 11 dollars.

Prashant S (1995)
University of Maryland
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