What is the difference between future value and present value

Business & Finance
Tutor: None Selected Time limit: 1 Day

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

Jul 31st, 2014

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.

Jul 31st, 2014

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Jul 31st, 2014
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Jul 31st, 2014
Dec 11th, 2016
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