what is difference between present value and future value ?
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Present value is defined as the current worth of the future cash flow whereas Future value is the value of the future cash flow after a certain time period in the future. While calculating present value inflation is taken into account but while calculating future value inflation is not considered.
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Key Differences between Present Value vs Future Value
Key Differences between Present Value vs Future ValuePresent value is the current value of future cash flow whereas future value is the value of future cash flow after specific future periods or years. ... Present value involves both discounted rate and interest rate whereas future value involves only interest rate.
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