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Clicked here http://www.MBAbullshit.com/ and OMG wow! I'm SHOCKED how easy.. Exactly what is Present Value and how will you utilize the Present Value Formula? In the event that you already understand the idea of Future Value, you will be able to easily understand Present Value. Exactly what is the "Present Value" of today's \$100? It's also \$100! Why? Because "present" means "today". Thus, it is \$100 today (present value), and after earning interest, it may become \$105 the following year (future value). Let's say that one year ago, this money was only a little more than \$95, and then it earned interest all through the year, and now it's valued at\$100. Exactly which is the "Past Value" of your \$100? Again, very straightforward! It is \$95. So... with regard to your \$100 right now, Present Value is \$100, Past Value is \$95, and the Future Value is \$105. However, that was quite a simple example to point out the concept. The important challenge in school as well as actual business is learning the specific number of your Future Value, Present Value, and Past Value, using scary looking but very simple formulas. The Present Value or Past Value Formula, simplified, resembles this: Present Value or Past Value = (1 interest rate)^n Where n = number of years. Don't be alarmed. You might prefer to watch it in action in the video above and you'll see how easy it is to use it. Just about the most confusing thing regarding the Present Value and Past Value concepts is that in many different business schools also with numerous books, Present Value and Past Value are explained almost like they're exactly the same thing. However, they are not. They are very different! Why the confusion? Because they definitely utilize the same formula. However, the result of the formula will allow you compute either the present value or the past value, depending on how the story is told. http://www.youtube.com/watch?v=zR3L5mLTi7s
Views: 228337 MBAbullshitDotCom
Views: 770532 Khan Academy
Views: 16347 Asset Yogi
From Thinkwell's College Algebra Chapter 6 Exponential and Logarithmic Functions, Subchapter 6.1 Exponential Functions
Views: 88064 ThinkwellVids
Views: 440824 Khan Academy
Should you take \$100 today or \$200 in two years? Mr. Clifford expalins how to calculate the future value and the present value of money.
Views: 141505 Jacob Clifford
http://www.subjectmoney.com http://www.subjectmoney.com/articledisplay.php?title=Time%20Value%20of%20Money:%20Present%20Value%20and%20Future%20Value What is future value? Future value is the value that money today will be worth at some point in the future if invested for a return. For example, we have \$100 today, and we invest it for 1 year at 10% interest, then in 1 year the Investment will be worth \$110. In other words, the future value of \$100 invest for 1 year at 10% is \$110. This is because we will still own the original \$100 and we also earned 10%, an additional \$10. In total our \$100 investment will be worth \$110 in 1 year. The future value formula is shown below. What is present value? Present value is today's value of a future Cash Flow . For example, everyone knows that \$100 today is more valuable than \$100 in the future, but what about \$110, \$120 or even \$200 in the future. How do we calculate what they are worth today? To calculate the present value of a future cash flow we would need a few pieces of information. We need to know when to expect the cash flow, the value (future value) of the cash flow, and the Discount rate . What is the discount rate? The discount rate is the Opportunity Cost s that you have foregone to receive funds in the future. I know, this may sound confusing but it should eventually click. An easy way to understand the discount rate is to ask yourself this question. What kind of investment returns are available to me? If I had \$100,000 today, what would the return be on my investment one year for today? Whatever that rate is would be your opportunity cost and would therefore be your discount rate. (It can be more complicated that this when comparing risk but this is a simplified lesson.) https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=XF_3Dt-8OPE http://www.roofstampa.com hjttp://roofstampa.com http:/www.subjectmoney.com http://www.excelfornoobs.com
Views: 57577 Subjectmoney
Views: 43681 Edspira
http://www.subjectmoney.com This Time Value of Money Lesson TVM covers all the basic concepts of the Time Value of Money that you would learn in Finance. In this tvm tutorial we cover simple interest, compound interest, present value formula, future value formula, annuity due, ordinary annuity, present value of annuities, future value of an annuity, intrayear compounding interest, and perpetuities. In this time value of money lesson we teach you by video using visualizations to help you understand how money and time works. If you study this finance tvm video tutorial in combination with what you leanr about the time value of money in your finance class, you should have a clear understanding when it is time to take your time value of money tvm test or exam. I’m glad that I could help you study for your finance time value of money exam. What is simple interest? What is compound interest? What is an ordinary annuity? What is an annuity due? What is the present value formula? What is the future value formula? How to solve the present value of an uneven series of cash flows. What is a perpetuity? How to solve the present value of an ordinary annuity. How to solve the present value of an annuity due. How to solve the future value of an annuity due. How to solve the future value of an ordinary annuity. Present value of a perpetuity formula. Time value of money, time value of money lesson, tvm, tvm lesson, tvm formulas, time value of money formulas, present value formula, future value formula, present value, future value, annuity due, ordinary annuity, simple interest, compounding interest, intrayear compounding interest, perpetuity, present value of a perpetuity, how to present value, what is present value, what is time value of money
Views: 197232 Subjectmoney
Clicked here http://www.MBAbullshit.com/ and OMG wow! I'm SHOCKED how easy.. No wonder others goin crazy sharing this??? Share it with your other friends too! Exactly what is Present Value and how will you utilize the Present Value Formula? In the event that you already understand the idea of Future Value, you will be able to easily understand Present Value. Exactly what is the "Present Value" of today's \$100? It's also \$100! Why? Because "present" means "today". Thus, it is \$100 today (present value), and after earning interest, it may become \$105 the following year (future value). Let's say that one year ago, this money was only a little more than \$95, and then it earned interest all through the year, and now it's valued at\$100. Exactly which is the "Past Value" of your \$100? Again, very straightforward! It is \$95. So... with regard to your \$100 right now, Present Value is \$100, Past Value is \$95, and the Future Value is \$105. However, that was quite a simple example to point out the concept. The important challenge in school as well as actual business is learning the specific number of your Future Value, Present Value, and Past Value, using scary looking but very simple formulas. The Present Value or Past Value Formula, simplified, resembles this: Present Value or Past Value = (1 interest rate)^n Where n = number of years. Don't be alarmed. You might prefer to watch it in action in the video above and you'll see how easy it is to use it. Just about the most confusing thing regarding the Present Value and Past Value concepts is that in many different business schools also with numerous books, Present Value and Past Value are explained almost like they're exactly the same thing. However, they are not. They are very different! Why the confusion? Because they definitely utilize the same formula. However, the result of the formula will allow you compute either the present value or the past value, depending on how the story is told. http://www.youtube.com/watch?v=FnzoTQMCIo4
Views: 114120 MBAbullshitDotCom
Views: 540027 Edspira
Visit http://www.TeachExcel.com for more, including Excel Consulting, Macros, and Tutorials. This Excel Video Tutorial goes through 3 Present Value problems and shows you how to solve them using the PV() function in Excel. You will learn some of the basic applications for the present value function and also the different uses for this function. The three examples include how to figure out what a future amount is worth today; valuing annuity payments in the future for today; and how to value an asset with the present value function. This is a great tutorial for all of those just learning finance or for people who need to more accurately find the value of and asset or cash flow. 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: 76694 TeachExcel
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: 107537 Lisa Dumont
Views: 117105 Edspira
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: 29691 Notepirate
Demonstrates the concept of present value of future cash flows, and shows how to use the PV 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: 51254 Codible
Present Value and Future Value explained from TeachMeFinance.com
Views: 233907 Mark McCracken
Views: 40 The Course
How to find the Future Value when interest is compounded! YES there is a mistake in this video... my apologies, but it doesn't change the fact that this video will show you how to compute Future Value quickly and easily! Here is a link to my math videos organized by topic! https://sites.google.com/view/nabifroesemathvideos
Views: 258663 Nabifroese
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: 4540 Kevin Kimball
This video is suitable for CA CPT SIMPLE INTEREST | COMPOUND INTEREST CA CPT | SIMPLE INTEREST AND COMPOUND INTEREST CA CPT | SIMPLE INTEREST CA CPT | SIMPLE INTEREST TRICKS | SIMPLE INTEREST CA FOUNDATION | COMPOUND INTEREST CA FOUNDATION | CA CPT ANNUITY | CA CPT MATH ANNUITY | ANNUITY CS FOUNDATION | CA FOUNDATION ANNUITY | PRESENT AND FUTURE VALUE ANNUITY | CA FOUNDATION MATHEMATICS CLASSES | CA FOUNDATION MATH CLASS | CA FOUNDATION MATH LECTURES | CA FOUNDATION MATH | CA FOUNDATION MATH CHAPTER 4 | CA CPT MATH | CA CPT MATHEMATICS | CMA MATH | MATHEMATICS CA | SINKING FUND CPT | TIME VALUE OF CMA. To watch complete course click here :- https://www.vidyakul.com/super-saver/super-saver-by-chandan-sir For Videos related call at :- 9818434684 For Books related enquiry :- 8010201786 For any other Enquiry :- 9953633448 Mail ID :- [email protected]
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.
Future Value of an Uneven Cashflow - Finance Tutorial by TeachMeFinance.com
Views: 76772 Mark McCracken
Future Value calculation and concept explained in hindi. Future value formula for a single cash flow explained in Excel as well. Let's learn about Compound Interest and power of compounding i.e. how we can grow our money. Related Videos: Time Value of Money - https://youtu.be/Pazp1b2LhAQ Future Value of an Annuity - https://youtu.be/f6a7E3326QQ Future Value of Uneven Cash Flows - https://youtu.be/yHoTUk8HP-c Present Value - https://youtu.be/pxm-5MBO2dg Present Value of an Annuity - https://youtu.be/0giLqLyijtc Net Present Value (NPV) - https://youtu.be/SpHIBfPGwx8 Internal Rate of Return (IRR) - https://youtu.be/x6eXfx2Tv-w Rule of 72: https://youtu.be/BFRGWenwulc
Views: 59950 Asset Yogi
More videos at http://facpub.stjohns.edu/~moyr/videoonyoutube.htm
Views: 39510 Ronald Moy
Views: 15231 Asset Yogi
This video explains concept of future value and present value of single cashflow.
Views: 1125 Vanijyavidya
Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm Learn about Stock Value Based on Present Value of Future Dividend Cash Flows.
Views: 26012 ExcelIsFun
Views: 91586 Edspira
Views: 6732 Asset Yogi
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: 105595 Codible
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: 64137 Kevin Kimball
Views: 445408 OneClass
Present Value of a Lump Sum http://www.youtube.com/watch?v=PgrWjFCv2k0 Present Value with Two Interest Rates http://www.youtube.com/watch?v=VS4OZsJMF5o
Views: 15871 Ronald Moy
Present Value & Future Value Lecture/Lesson In this lesson on present value and future value we will teach you the present value formula & the future value formula. We will briefly cover the different types of cash flow, annual interest rate vs effective interest rate, the discount rate for cash flow, and we will briefly cover the present value of an annuity.
Views: 3386 Subjectmoney
Views: 3152 Chegg
This video shows how to calculate the present value (PV) of stream of mixed cash flows using Texas Instruments BAII Plus financial calculator
Views: 16988 The Finance Classroom
For a better understanding of the objective of discounting future sums of money and how to calculate present value; discounting is at the root of the time value of money principle; the hardest job is to determine the right discount rate. The value of any financial asset is nothing but the present value of all the cash flows it will generate. https://sites.google.com/site/futurcpa
Views: 3043 Jean-François Roy
Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 Net Present Value, commonly referred to as NPV, is a capital budgeting tool used in corporate finance and is designed to help firms assess the financial feasibility of various capital expenditures. Based largely on the time value of money, NPV compares the value of the initial investment to the cash flow generated over a number of years. An NPV greater than 0 supports the acceptance of the project, while an NPV less than 0 supports the rejection of the project. Over the course of this video we'll walk through how to calculate NPV using the present value formula. Although the process is rather simple once you understand the basics, calculating NPV can be rather time consuming. To ensure accuracy make sure that you are organized when writing out your calculations as one number can certainly affect your results.
Views: 18732 Edspira
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: 564526 patrickJMT
Calculating the Future Value (FV) of uneven cash flows using two methods on Excel (FV and NPV)
Views: 2980 David Johnk
Views: 15818 Anil Kumar