complete the formula that is used to calculate the present value
Answers
Answered by
0
hyyy mate here is ur answer
hope it's hlp u mark it brainlist
hope it's hlp u mark it brainlist
Attachments:
Charudoll:
Acha
koi shk ;)
Chalo byy gud nit take care sd
nind bhi nii aa rii lekin phone ne battery bhi nii he ;(
haa gn kl baat krni ho to msg kr dena
Ok
Song Sun lo neend aa jayegi
ohk bubyee
have a great night;)
U 2
Answered by
0
Present Value (PV) is a formula used in Finance that calculates the present day value of an amount that is received at a future date. The premise of the equation is that there is "time value of money".
Time value of money is the concept that receiving something today is worth more than receiving the same item at a future date. The presumption is that it is preferable to receive $100 today than it is to receive the same amount one year from today, but what if the choice is between $100 present day or $106 a year from today? A formula is needed to provide a quantifiable comparison between an amount today and an amount at a future time, in terms of its present day value.
Use of Present Value Formula
The Present Value formula has a broad range of uses and may be applied to various areas of finance including corporate finance, banking finance, and investment finance. Apart from the various areas of finance that present value analysis is used, the formula is also used as a component of other financial formulas.
Time value of money is the concept that receiving something today is worth more than receiving the same item at a future date. The presumption is that it is preferable to receive $100 today than it is to receive the same amount one year from today, but what if the choice is between $100 present day or $106 a year from today? A formula is needed to provide a quantifiable comparison between an amount today and an amount at a future time, in terms of its present day value.
Use of Present Value Formula
The Present Value formula has a broad range of uses and may be applied to various areas of finance including corporate finance, banking finance, and investment finance. Apart from the various areas of finance that present value analysis is used, the formula is also used as a component of other financial formulas.
Similar questions