Home
Search results “Future value of payments”
Introduction to present value | Interest and debt | Finance & Capital Markets | Khan Academy
 
10:20
A choice between money now and money later. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/present-value-2?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/time-value-of-money?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: If you gladly pay for a hamburger on Tuesday for a hamburger today, is it equivalent to paying for it today? A reasonable argument can be made that most everything in finance really boils down to "present value". So pay attention to this tutorial. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 788147 Khan Academy
Present Value of an Annuity
 
08:36
This video explains how to calculate the present value of an annuity. A formula is presented for calculating the present value of an annuity and an example is used to illustrate the calculations. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 132858 Edspira
How to Calculate the Future Value of a Lump Sum Investment | Episode 38
 
04:43
Help us learn more about your experience by completing this short survey: https://www.surveymonkey.com/r/RRKS8LZ Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 If you're deciding to invest a lump-sum over a period of time you can quickly determine what the future value of that investment would be. In this brief video I'll show you how to calculate the future value of a lump-sum investment. Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy. Click here for a 14 day free trial: http://bit.ly/1Iervwb To view additional video lectures as well as other materials access the following links: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P
future value of multiple payments - ادارة مالية
 
11:22
شرح الادارة المالية الباب الاول https://docs.google.com/file/d/0B88PBaRqgLyuODRubjRfc2c2c0U/edit?usp=docslist_api&filetype=mspresentation الباب الثاني https://docs.google.com/file/d/0B88PBaRqgLyucG9xdFloNVBCZzg/edit?usp=docslist_api&filetype=mspresentation الباب الثالث https://docs.google.com/file/d/0B88PBaRqgLyuUWlmelotOVl4RDg/edit?usp=docslist_api&filetype=mspresentation الباب الرابع https://docs.google.com/file/d/0B88PBaRqgLyuVkhVZk1ld0VPMTA/edit?usp=docslist_api&filetype=mspresentation الباب الخامس https://docs.google.com/file/d/0B88PBaRqgLyuajFyV1R4RG90eVE/edit?usp=docslist_api&filetype=mspresentation اسئلة مفيدة https://drive.google.com/open?id=0B88PBaRqgLyuYmdNbFVIbzlEUUk • • لأي استفسار يمكنكم التواصل عبر : Twitter : @Moo00ood - https://mobile.twitter.com/m00oo00d Instagram : @Moo00ood - https://instagram.com/p/BQnXcYDAmSx/
Views: 3747 Ba Salem
Future Value of a Stream of Payments (calculus)
 
03:56
Calculating how much an investment is worth when continually adding money to the total as it is growing.
Views: 8934 Pat Riley
Annuities : Annuity Due , Finding Future Value
 
09:55
Thanks to all of you who support me on Patreon. You da real mvps! $1 per month helps!! :) https://www.patreon.com/patrickjmt !! Annuities : Annuity Due , Finding Future Value. In this video, we invest a fixed amount at regular intervals in an annuity due. We then find the future value of the annuity.
Views: 598268 patrickJMT
Compute the Present Value of Minimum Future Lease Payments
 
07:17
This is an example that I use in my introductory managerial accounting course to teach the concept of present value when a guaranteed residual value exists.
Views: 7334 Kevin Kimball
Future Value of a Single Amount
 
02:42
This video explains how to calculate the future value of a single amount (a single cash flow). An example illustrates how a formula can be used to determine how much an investment will grow over time given a certain rate of interest. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 23445 Edspira
How to Calculate Regular Weekly Payment for Annuity with given Future Value
 
05:45
Related Video: https://www.youtube.com/watch?v=n6zM5mf29WQ
Views: 798 Anil Kumar
Annuities - Finding the Future Value of an Equal Payment Series
 
05:21
In this video, we solve an equal series cash payment for the future value after 10 years. This is an important concept in engineering economics, and annuities come up all the time. Make sure you know how to deal with them here! VISIT OUR WEBSITE AT http://www.afmatheng.com/ !!! ----------------------------------------------------------------------------------------------------------- Now try to solve it on your OWN! Don't just "understand"... PRACTICE!! ----------------------------------------------------------------------------------------------------------- AF MATH AND ENGINEERING - Students Helping Students! Join our Community! =) ------------------------------------- Follow us on Twitter at https://twitter.com/AFMathEng Follow us on Facebook at https://www.facebook.com/AFMath1/?fref=ts #math #civilengineering #engineering #education #edchat #lrnchat #blendchat #mlearning #elearning #ipadchat #pblchat #passiondriven #blendedlearning #ccchat #ccss #commoncore #competencyed #curriculum #deeperlearning #digln #earlyed #edapp #eddata #edleaders #edpolicy #edtech #education #elearning #highschool #leadership #middleschool #literacy #engchat #mathchat #scichat #stem #highered #calculus
Views: 1459 AF Math & Engineering
Uniform Series of Cash Flows - Present & Future Value | Loan Payments & Savings Plans
 
37:27
LECTURE 13 Here a uniform series of cash flows (wherein a number of equal cash flows occur each period over a span of time) is presented. The manual technique of computing the present or future value of each flow, then summing to find a total is presented and the unwieldiness of this method is seen when the number of periods is large. One method of streamlining the process is shown by using the summing feature of the Casio fx-115es plus. A more elegant method of streamlining the computation of future or present value of a uniform series is then shown via the development of formulas. These formulas are developed using the same process as the manual technique, but using variables and some interesting tricks to make use of the binomial theorem. Examples are shown that utilize the formulas developed in the context of financing a used car. ENGR 122 Playlist (Engineering Problem Solving III): https://www.youtube.com/playlist?list=PL1IHA35xY5H52IKu6TVfFW-BDqAt_aZyg ENGR 121 Playlist (Engineering Problem Solving II): https://www.youtube.com/playlist?list=PL1IHA35xY5H4g1F-lGnVyGjR59sirWydD ENGR 120 Playlist (Engineering Problem Solving I): https://www.youtube.com/playlist?list=PL1IHA35xY5H55-AcO5Vn-51AFGX3aJwfb This lecture segment was recorded on April 17, 2018. All retainable rights are claimed by Michael Swanbom. Please subscribe to my YouTube channel and follow me on Twitter: @TheBom_PE Thank you for your support!
Views: 419 TheBom_PE
Future Value of an Uneven Cashflow
 
06:09
Future Value of an Uneven Cashflow - Finance Tutorial by TeachMeFinance.com
Views: 79006 Mark McCracken
calculating future value on excel
 
06:18
Demonstrates the concept of future value and shows how to use the FV function in Excel 2010 Follow us on twitter: https://twitter.com/codible Some good books on Excel and Finance: Financial Modeling - by Benninga: http://amzn.to/2tByGQ2 Principles of Finance with Excel - by Benninga: http://amzn.to/2uaCyo6
Views: 161936 Codible
Finance: How to calculate Annuity, Present Value, Future Value
 
04:36
More HD Videos and Exam Notes at https://oneclass.com Our goal is helping you to get a better grade in less time. We provide various exam tutorials which are specifically designed for your courses. Please go to our official website http://oneclass.com and Visit our channel for more tutorials: http://www.youtube.com/user/Notesolution Like us on Facebook: http://facebook.com/oneclass Follow us on Twitter: http://twitter.com/getoneclass Follow us on Instagram: http://instagram.com/getoneclass
Views: 462377 OneClass
Excel & Business Math 45: Future Value, Present Value and Periodic Payments for Annuities
 
51:23
Download Start Excel File: https://people.highline.edu/mgirvin/AllClasses/135NoTextBook/Content/07Finance/ExcelBusinessMathVideo45AnnuitiesFVandPV.xlsx Download pdf Notes: https://people.highline.edu/mgirvin/AllClasses/135NoTextBook/Content/07Finance/ExcelBusinessMathVideo45AnnuitiesFVandPV.pdf Entire Class Web Site: https://people.highline.edu/mgirvin/AllClasses/135NoTextBook/135/135NoTextBookClass.htm In this video learn how to make Present Value, Future Value and PMT for the Cash Flows, both Annuity Cash Flows and Irregular Cash Flows. This is a comprehensive video about Financial Products, Cash Flows and Annuities. Excel & Business Math Class (Busn 135) taught by Michael Girvin at Highline College / Mike Girvin at excelisfun Channel at YouTube Channel. Topics in Video: 1. (00:01) Introduction 2. (02:27) Cash Flow Pattern Diagram for Future Value and Irregular Cash Flows. Future Value Calculation of Savings Plan with Irregular Cash Flows, Hand Drawings & Diagram. 3. (04:34) Excel Example 1: Calculate Future Value of Savings Plan with Irregular Cash Flows. 4. (09:17) Cash Flow Pattern Diagram for Present Value Calculation of Irregular Future Cash Flows. Asset Valuation Calculation. Hand Drawings & Diagram. 5. (11:51) Excel Example 2: Calculate Present Value of Irregular Future Cash Flows to determine Asset Valuation. 6. (19:35) Define Terms for an Annuity 7. (21:00) Cash Flow Pattern Diagram for Future Value and Present Value of Periodic Cash Flows 8. (23:14) Excel Example 3: Calculate Future Value for Savings Plan with Periodic Cash Flow in an End Annuity. FV Function. 9. (32:02) Excel Example 4: Calculate Present Value of Future Periodic Cash Flows (End Annuity) to determine Asset Valuation. PV Function. 10. (37:45) Excel Example 5: Calculate PMT When Present Value Amount is Known. How Much Can We Withdraw at End of Each Month for Next 30 Years? PMT Function. 11. (42:17) Excel Example 6: Calculate PMT When Future Value Amount is Known. How Much Should I Deposit at the End of Each Month to Become Millionaire? PMT Function. 12. (45:47) Excel Example 7: Calculate PMT For a Home Mortgage Loan, Where Loan is Positive Present Value Amount. PMT Function. 13. (48:33) Summary Link to full Finance Class: https://www.youtube.com/playlist?list=PL90E1F26C7B85E78F
Views: 4032 ExcelIsFun
How to Calculate the Present Value of an Annuity
 
10:13
Help us learn more about your experience by completing this short survey: https://www.surveymonkey.com/r/RRKS8LZ Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 In this video, I show how to calculate the present value of an annuity. In addition to converting the series of payments via the traditional discounting method, I'll show how to solve the problem utilizing a handy equation.
Views: 209449 Alanis Business Academy
How to Calculate Present Value
 
05:54
Help us learn more about your experience by completing this short survey: https://www.surveymonkey.com/r/RRKS8LZ Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 In this video I use the present value equation to discount a future payment in today's dollars. We know that due to the time value of money $1,000 three years from now is not worth the same as $1,000 today. In order to make an accurate comparison we need to discount our future cash receipts to see what they would be worth today. To view additional video lectures as well as other materials access the following links: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P
How to Calculate the Future Value of an Annuity
 
09:51
Help us learn more about your experience by completing this short survey: https://www.surveymonkey.com/r/RRKS8LZ Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 Generally, when starting investments we decide to make ongoing contributions to them. I. This brief video I'll show you how to calculate the future value of an annuity, which represents a series of ongoing equal payments.
Deriving the formula for the Future value of an Annuity
 
12:04
Deriving the formula for the Future value of an Annuity
Views: 28503 Elroi Academy
Time Value of Money Calculations on the BA II Plus Calculator
 
07:20
In the examples solved in this video (compiled by Andrew Rossman), P/Y & C/Y are left at their default values. That is, P/Y=C/Y =1. For examples that require changing P/Y and C/Y, please see the following playlist: https://www.youtube.com/playlist?list=PLD3fYc0bAjC-gmXXegedT3l9mLa8YjhK5 Problems Solved: Example 1: Laura takes a 15-year, $500 000 mortgage, on a new condo. At an interest rate of 4% (that is compounded monthly), what is the monthly payment? Example 2:Helene is planning ahead for her daughter Paula’s college tuition. Paula begins college in 5 years and will need $80,000. How much would Helene have to invest today at 6% compounded annually to have $80,000 in 5 years? Example 3: Josh has an investment account with $50,000. If Josh earns 6% per year and contributes $400 each month, how much will his investments be worth in 10 years? Example 4: Steven has $25,000 in credit card debt. His credit card charges 2% in monthly interest and Steven pays $1,000 each month toward the balance. If Steven doesn’t make any further purchases, how many months will it take to fully repay his debt? Example 5: Martin’s savings account has $25,000 today. In 5 years, the account is worth $32,000. What is the annual interest rate?
Views: 133560 Joshua Emmanuel
Excel Tells You the Future Value of Your Investment
 
06:59
Do you have a saving goal? Do you want to know how much to invest each month / year to reach that goal? Excel has a very powerful function - the Future Value (FV) that will give you the answers that you need. In this video, I demonstrate the FV() and PMT() Functions. I also create a one-input Data Table so that we can perform "What-If" Analysis - what if my Interest Rate changes? I invite you to visit my website - www.thecompanyrocks.com/excels - to view all of my Excel Video Lessons
Views: 35744 Danny Rocks
Finance Basics 4 - Calculating Annuities in Excel - Future Value for Annuities
 
06:31
Visit http://www.TeachMsOffice.com for more, including Excel Consulting, Macros, and Tutorials. This Excel Video Tutorial shows you how to calculate the total future value of a series of annuity payments. This is a must for finance majors as well as people who need to know the future value of and series of payments which they may be receiving. This tutorial covers this basic finance concept and shows you how to solve annuity problems by hand in Excel and also using the fv() future value function in Excel. For Excel consulting, classes, or to get the spreadsheet or macro used here visit the website http://www.TeachExcel.com There, you can also get more free Excel video tutorials, macros, tips, and a forum for Excel. Have a great day!
Views: 81770 TeachExcel
Calculating Payments for Future Value - TI-83/84 141-34
 
05:00
Calculating the payments for a future value problem using TI-83 or TI-84 calculators. This video is provided by the Learning Assistance Center of Howard Community College. For more math videos and exercises, go to HCCMathHelp.com.
Views: 1950 HCCMathHelp
10. BA II Plus Calculator: Compound Interest: Present Value/Future Value
 
12:47
In this video we will go over how to calculate Present Value given Future Value and Future Value given Present Value.
Future Value for Multiple Cash Flows
 
06:59
Future Value of a Lump Sum http://www.youtube.com/watch?v=918kPU12kC0
Views: 23110 Ronald Moy
Future Value of an Annuity
 
13:10
Here is a link to my math videos organized by topic! https://sites.google.com/view/nabifroesemathvideos future value of an annuity, future value, annuity, compound interest, financial math, financial, payments
Views: 13495 Nabifroese
Calculate the Present Value for Multiple Cash Flows (Intermediate Accounting I #3)
 
05:35
What happens when we have multiple periods of different sized cash flows? We discount the cash flows individually using the equation we just learned. Illustrations included to clearly explain the concept like always! Website: http://www.notepirate.com Follow us on Facebook: https://www.facebook.com/pages/Note-Pirate/514933148520001?ref=hl Follow us on Twitter: http://twitter.com/notepirate We appreciate all of the support you guys have given us. Be apart of the mission to help us reach more students by subscribing, thumbs upping and adding the videos to your favorites! ** Notepirate is privately owned and exclusive to Notepirate.com.**
Views: 33237 Notepirate
Lesson 1 video 2: Single Payment Compound Amount Factor (future value)
 
02:33
The first type of problem in the six categories, described in previous video, asks you to calculate the future value of a single present time payment. A single sum of money is given at the present time and problem asks you to calculate its future value or future worth, according to given interest rate per period of i and number of periods away from present time, n.
Views: 5151 F. Tayari
Present value for lease
 
06:26
Views: 4750 _Nader M
Determine Monthly Deposit Needed Given Future Value of Savings Annuity (Formula)
 
05:28
This video explains how to determine the monthly deposit needed to have a given future value of a saving annuity using a formula. http://mathispower4u.com
Views: 3671 Mathispower4u
Calculate the Future Value (FV) of Uneven Cash Flows on Excel -- Two Methods
 
07:56
Calculating the Future Value (FV) of uneven cash flows using two methods on Excel (FV and NPV)
Views: 3725 David Johnk
Future Value with Regular Payments and Compound Interest
 
32:18
We develop the formula for the future value of a savings account after regular payments with compounding interest. We use the formula in an example calculation and compare with results from financial calculators and in Excel.
Views: 160 Christopher Vaughen
BA II Plus - Ordinary Annuity Calculations (PV, PMT, FV)
 
04:32
Using the Texas Instruments BA II Plus calculator, we solve 2 ordinary annuity problems -simple and general. We calculate Future Value and Present Value for simple and general annuities respectively.
Views: 184453 Joshua Emmanuel
Future Value of an Annuity w/ Non-Annual Payments
 
17:15
This video covers the future value of an annuity with non-annual compounding. This video is part of a set of videos that cover the time value of money and is designed for an introductory finance class. The creator is Craig Ruff, Ph.D., CFA of Georgia State University. The PowerPoint is available for download at financevideos.org.
Views: 1058 FinanceVideos
Excel tutorial: Present value (PV) in excel 2010
 
04:02
Download excel file: http://codible.com/pages/58 Present value (PV) function lets you calculate the present discounted value of a series of future cash flows. In this example we see how to calculate the loan amount you can borrow for a given series of equal monthly payments like, say a car loan payment. Follow us on twitter: https://twitter.com/codible Some good books on Excel and Finance: Financial Modeling - by Benninga: http://amzn.to/2tByGQ2 Principles of Finance with Excel - by Benninga: http://amzn.to/2uaCyo6
Views: 113104 Codible
Deriving formulas for the present value of a series of regular payments
 
15:10
David shows derivations for two different formulas for the present value of a series of regular payments (starting one time period in the future)
Ordinary Annuity And Annuity Due Interest, Payments, Present Value, Future Value
 
08:04
Calculate present value, future value for both ordinary and annuity due type annuities, knowing the equal payments, interest rate, and time frame calculate the present value and future value for the annuity, usually done with financial functions on a calculator, understanding the hand calculations shown here gives the accounting student an understanding of how payments and interest along with present and future are determined for an annuity (used for accounting journal entires, etc.), demonstrated using cash flow diagrams for each case (PV & FV ordinary annuity, PV & FV annuity due), calculations shown thru amortization schedules, based on (beginning balance + interest + payment = ending balance, ending balance becomes next periods beginning balance), gives an understanding of how annuities work and amounts that would be used in accounting problems by Allen Mursau
Views: 46337 Allen Mursau
Compute Present Value of Future Payments Using an HP12c Platinum
 
05:50
If you happen to be studying accounting, you might also be interested in my Debits and Credits Trainer for the Android which you can buy at: https://play.google.com/store/search?q=debits+and+credits+trainer This video simply shows how to compute the present value of future payments with compound interest. In short, the user wants to know how much money he should have set aside by the time his daughter enters college assuming she will take 4 years to complete her education and will deduct $500 per month with 6% compounded interest. The example comes from page 12 of the HP 12c Platinum Financial Calculator 5th Edition English User's Guide.
Views: 65349 Kevin Kimball
Finance Basics 8 - Future Value of a Principal Amount With Recurring Annuity Payments in Excel
 
06:02
Visit http://www.TeachExcel.com for more, including Excel Consulting, Macros, and Tutorials. This Excel Video Tutorial shows you how to calculate the Future Value of a series of annuity payments in Microsoft Excel. You will learn what an annuity is and how to figure out the future value of that annuity. The main method you will learn to do this is the FV() or future value function in Excel. For Excel consulting, classes, or to get the spreadsheet or macro used here visit the website http://www.TeachExcel.com There, you can also get more free Excel video tutorials, macros, tips, and a forum for Excel. Have a great day!
Views: 8977 TeachExcel
Future Value Multiple Cash Flows in Excel
 
07:49
More videos at http://facpub.stjohns.edu/~moyr/videoonyoutube.htm
Views: 17478 Ronald Moy
Calculating the Future Value of Annuity | Personal Finance Series
 
10:05
Help us learn more about your experience by completing this short survey: https://www.surveymonkey.com/r/RRKS8LZ Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 Learn how to calculate the future value of annuity using the future value of annuity equation. The future value of annuity represents the future value of a stream of payments made over a period of time. Using the future value of annuity equation, we can determine how much money we'll have at a future point in time. To perform this equation we'll need to know how much money we intend to contribute, the length of time we intend to make those payments, and the rate of return we anticipate over a period of time. This calculation is commonly used to determine future retirement savings, either through a 401k, 403b, and traditional or Roth IRA.
Finance Basics 11 - Annuity Due Calculation in Excel - Present Value and Future Value
 
08:06
Visit http://www.TeachMsOffice.com for more, including Excel Consulting, Macros, and Tutorials. This Excel Video Tutorial shows you how to calculate the Annuity Due in Excel. You will learn how to calculate the annuity due for the present value and future value functions in Excel. Annuity due simply means that any annuity payments are made at the end of the period instead of the default situation where annuity payments are made at the beginning of the period. This is a great tutorial for all of those just starting out in finance or for people who need to learn how to calculate an annuity due in Excel. For Excel consulting, classes, or to get the spreadsheet or macro used here visit the website http://www.TeachExcel.com There, you can also get more free Excel video tutorials, macros, tips, and a forum for Excel. Have a great day!
Views: 43837 TeachExcel
Calculating Future Value of an Annuity - TI-83/84  141.33
 
05:19
Using a ti-83 or ti-84 calculator to find the future value of an annuity. This video is provided by the Learning Assistance Center of Howard Community College. For more math videos and exercises, go to HCCMathHelp.com.
Views: 38627 HCCMathHelp
Find Present Value of a Payout Annuity and Then Payments to Reach Goal (TI-84 TVM Solver)
 
04:37
This video explains how to determine the present value of a payout annuity and then determine the monthly deposits needed for savings annuity to reach the financial goal using the TI-84 TVM Solver. http://mathispower4u.com
Views: 2090 Mathispower4u
Future Value of an Ordinary Annuity
 
10:48
Future Value of an Ordinary Annuity, Calculation of Payment amount and Number of Payments https://youtu.be/Srz_7PPzUyY
Present value, future value, and compounding made easy
 
15:10
Background A dollar received now is more valuable than a dollar received a year from now. If you have that dollar today, you can invest it and increase its value. Let's explain a bit further: The time of value of money is the difference in value between having a dollar in hand today and receiving a dollar sometime in the future. Why is present and future value important? Since money has a time value, we must take this time value into consideration when making business decisions. Present and future value calculations are powerful methods available in making financial decisions. Once you understand and master the calculations, you can apply these equations for restating cash flows to make them equivalent in business decisions. The calculations are building blocks for many decisions facing individuals and managers alike. In addition, these calculations allow one to calculate returns on investments, capital budgeting, and return on annuities, just to name a few. Key terms: Future value (fv) and present value (pv) are two concepts in clarifying the value of money. Future value is explained as an amount of money invested at present and will mature at the end of a given time when compounded at a given interest rate. Present value is money that must be invested now to accrue to a certain amount of money in the future when compounded. In simpler terms, present value is the value today of an amount of money in the future. Why is this important? For these situations, businesses need to find a method of weighing cash flows that are received at various periods of times (annual, years, quarters, ect). How do we go about finding the present and future value of cash flow? There are two fundamental equations that are commonly used; this video will demonstrate them throughout the presentation. Objectives: Following my discussion, you will be able to: • Have the knowledge of present value (pv) and future value (fv) • Be able to calculate the pv and fv with compounding • Have an understanding of compound interest Discussion: The video discusses the value of a dollar in hand today and applying calculations to determine what that dollar will be worth in the future. In addition, the video demonstrates the concept of wanting to have a specified amount of money in the future and the amount of money needed today in order to earn that specified amount. See the formulas used in video: Fv=pv (1+i) n Pv= (1/1+i) n FvPvn Pv=the beginning amount i= the interest rate/year n=number of years Fv=value at the end of n years. Important points: When computing compounding interest for greater than one year, remember that the interest in the next year is being paid on interest. The interest on the original dollar amount is referred to as "simple interest." Lastly, Net present value can be defined as the difference between the PV of cash inflows and the present value of cash outflows. Net present value is used in capital budgets to assess the probability of a project. The net present value is a standard affirming that a project should be established. Example: If a bank pays 5% interest on a $100 deposit today, in one year, this $100 will be worth $105. This is expressed by the following equation: F1= p (1+r). F1 is the balance at the end of the period, p represents the amount of invested, and r represents the rate of interest. For example, the future of $1,000 compounded at 10%, would be $1,100 after one year and $ 1,331 after three years of investing. For example, if the interest rate is 10%, then the present value of $500 earned or spent in one year from now is $500 divided by 1.10, equates to $455. This example demonstrates the overall notion that the present value of a future amount is less than the actual future amount. Summary Present and future values are important methods for any financial decision. An investment can be viewed in two methods. We discussed present and future values in this video. The process of finding the present value of future cash flows is referred as discounting. Discounting future value to present value is a common technique, especially when weighing in on capital budget decisions. Have the knowledge of the calculations will allow individuals to calculate almost any investment decision
Views: 111374 Lisa Dumont