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3 years ago

What is meant by the present value of money?

Mathematics

2 answers:

dlinn [17]3 years ago

4 0

Answer:

Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.

How to find PV:Calculating present value is called discounting. Discounting cash flows, like our $25,000, simply means that we take inflation and the fact that money can earn interest into account.

...

Calculating Present Value Using the Formula

FV = the future value.

i = interest rate.

t = number of time periods.

Step-by-step explanation:

GalinKa [24]3 years ago

3 0

Answer: Present value, also known as discounted value, is a financial calculation that measures the worth of a future amount of money or stream of payments in today’s dollars adjusted for interest and inflation. In other words, it compares the buying power of one future dollar to purchasing power of one today

Step-by-step explanation:

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3 years ago

For the first four days of a five day vacation, the mean temperature was 80 degrees. What must the temperature be on the fifth d

V125BC [204]

Answer:

The 5th day must be 90

Step-by-step explanation:

The first 4 days averaged out to 80

You can find their total just by multiplying by 4. That won't tell you the exact values, but it will tell you their total when you add the 4 of them together.

80*4 = 320

Now you need to add another day into the mix. Call it x

320 + x

Now there are 5 days, not 4, and the new total is 82.

(320 + x) / 5 = 82 Multiply both sides by 5

5*(320 + x) / 5 = 82 *5

320 + x = 410 Subtract 320

-320 -320

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3 years ago

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Answer:

Step-by-step explanation:

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3 years ago

What is meant by the present value of money?​

What is meant by the present value of money?