Concept explainers
To calculate: The
Introduction:
Future Value:
The value of an investment or asset in a future time period is termed as future value. It is calculated by multiplying the present value of the investment or asset with its growth rate.
Present value:
The current value of an investment or asset is termed as its present value. It is calculated by discounting the future value of the investment or asset.
Annuity:
When payments are made or received in a series at equivalent intervals, they are termed as an annuity. Such payments can be made weekly, monthly, quarterly, or annually.
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