Future value
To make a simple and easy to understand i will illustrate with diagram;
To make a simple and easy to understand i will illustrate with diagram;
If I invest a certain amount of money today, how much will I have in the future?
RM1.00 ?
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Year 0 Some future Year
Present Value
If I want to have a certain amount of money at some point in the future, how
much do I have to invest today?
? RM 1
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Year 0 Some future Year
Question
Question
TIME VALUE OF MONEY
A company currently pays a dividend of $10.00 per share. Determine how much the
company’s dividend will be in 10 years, assuming a 5% annual rate of growth.
A. RM 16.92
B. RM 17.28
C. RM 16.29
D. RM 17.92
How much must you have in the bank now in order to have $100 in the bank five years from
now? (Assume that the money you have in the bank will grow at a rate of 4% per year.)
A. RM 80.20
B. RM 81.20
C RM 82.20
D. RM 83.20
Excellent post. Time value of money is the concept of measuring the value of money over time. The concept derived from the fact that money does not remain static and over time does change value.
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cash for structured settlement