Ask Experts Questions for FREE Help !
Ask
    jennieporras's Avatar
    jennieporras Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 25, 2008, 08:41 AM
    What is the present value of a single future sum
    What is the present value of a single future sum
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Dec 14, 2008, 01:36 PM

    For this you want to know how much money do I need to invest now to have a certain amount in the future: For example how much do I need to invest now If I want a $15,000 down payment on a car 5 years from now.

    You need to know the interest rate, Number of periods, and the future amount needed.

    For the interest rate you take the annual rate / by the number of periods in one year to get the right rate.

    For number of periods you take the number of periods of interest in a year * number of years.

    For example 12% interest compounded quarterly will be 12/4 = 3% and the number of periods will be 4 * the number of years.
    chichef328's Avatar
    chichef328 Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Mar 16, 2010, 08:49 AM

    how is present value of a single sum and present value of an annuity related
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Present value and Future value [ 2 Answers ]

Please I need help to resolve this. I want to know if I am doing the correct calculations. They gave this information: Kiddy Toy Corporation needs to acquire the use of a machine to be used in its manufacturing process. The machine needed is manufactured by Lollie Corp. The machine can be...

Future and present value [ 2 Answers ]

Your rich godfather has offered you a choice of one of the three following alternatives: $10, 000 now; $2,000 a year for eight years: or $24,000 at the end of eight years. Assuming you could earn 11 percent annually, which alternative should you choose? If you could earn 12 percent annually,...

Present and future value [ 1 Answers ]

1. If you have 7.00 now and 8.10 in 3 years what is the effective annual interest rate? 2. If you have 9.00 now and 11.84 in 7 years what is the effective annual interest rate? Show how you got the formula as I am a little confused on this as my excel buttons will not work. ...

Using future value of single amount, future value of annuity table. [ 0 Answers ]

Hello, my question is how do you know when to use the Future of value of single amount table, and when to use the future value of annuity table?

Present Value and Future Value [ 2 Answers ]

A rich godfather has offered you a choice of one of the three following alternatives: $10,000 now; $2,000 a year for eight years; or $24,000 at the end of eight years. Assuming you could earn 11 percent annually, which alternative should you choose? If you could earn 12 percent annually, would you...

View more questions Search