Present Value and Future Value – Explanation of the Concept: Learning Objectives: Understand present value concepts and the use of present value tables. Compute the present value of a single sum and a series of cash flows. A dollar received now is more valuable
Mathematics of Interest
Mathematics provides us with the means of making such comparisons. With a few simple calculations, we can adjust the value of a dollar received any number of years from now so that it can be compared with the value of a dollar in hand today.