• Study Resource
  • Explore
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
Accounting Vocabulary - SPEAK
Accounting Vocabulary - SPEAK

Free 2009 Macro FRQs Click Here
Free 2009 Macro FRQs Click Here

YORK UNIVERSITY
YORK UNIVERSITY

... Fixed exchange rate requires holding of foreign reserves – usually low yielding assets, especially compared to alternative uses for the money If country really is committed to fixed exchange rate with no intention of ever changing the rate, then joining into currency union superior option o Reduces ...
Problem Set 3 Answers - University of Wisconsin–Madison
Problem Set 3 Answers - University of Wisconsin–Madison

... If the U.S. is expected to go into a recession, and inflation rates are not expected to rise, then the U.S. real interest rate expected in the future falls, and the dollar depreciates. The intuition for this is that a lower interest rate in the future implies that the value of dollars relative to a ...
Chapter 25 - U of L Class Index
Chapter 25 - U of L Class Index

Fixed rate bonds
Fixed rate bonds

...  Callable bond : the issuer has the right to redeem the bond prior to its maturity date. He will often call a bond if it’s paying a higher coupon than the current market interest rates. The company can reissue the same bonds at a lower interest rate.  Put bond :allows the bondholder to redeem the ...
FCS3450Fall2013Test1
FCS3450Fall2013Test1

... calculation would provide you with the value of the account in 20 years? A. future value of a single amount B. simple interest C. present value of a single amount D. present value of a series of deposits E. future value of a series of deposits 13. Which of the following is an example of opportunity ...
The Transmission Mechanism for Monetary Policy
The Transmission Mechanism for Monetary Policy

Chap 19-20
Chap 19-20

...  Competition and adverse selection limit ability to increase earnings from lending  Other investments offer higher returns but carry interest rate risk;  Rather than lending, could invest depositors cash in interest earning securities  As interest rates change, value of the investment portfolio ...
The Full Report from Bond Talk
The Full Report from Bond Talk

Year 11 Mathematics Standard Topic Guidance
Year 11 Mathematics Standard Topic Guidance

... If the pre-GST price for a fridge is $900, what is the sale price inclusive of GST? If a computer was purchased for $2500, what was the amount of GST paid on this item and its pre-GST price? If the interest rate is quoted as 6% pa, what amount needs to be invested in order for the investment to be w ...
CHAPTER 14
CHAPTER 14

... Compare the various types of savings accounts that banks offer to their customers. Explain how banks attempt to make a profit for their stockholders. Discuss the process of money creation by the banking system. Identify the purposes of the Federal Deposit Insurance Corporation. ...
Exponential Growth and Decay
Exponential Growth and Decay

... A Current / Future Value P Initial / Current Value i percent increase (as a decimal) n number of years Example: A coin collection was valued at $1500 in 1999. Each year, it increases in value by 8%. What is its current value? ...
Economic crisis: How did we get into it?
Economic crisis: How did we get into it?

Present Value of an Ordinary Annuity
Present Value of an Ordinary Annuity

S Economic SYNOPSES U.S. Historical Experience with Deflation
S Economic SYNOPSES U.S. Historical Experience with Deflation

MCQ4 - uob.edu.bh
MCQ4 - uob.edu.bh

The Investment Environment
The Investment Environment

...  Banking industry gives high return but limited capital appericial.  IT gives high return and high cap app but growth potential after 2002 is not ...
Presentation Slideshow
Presentation Slideshow

Chapter 16
Chapter 16

... However, the efficient market hypothesis states that no such profits exist because events and circumstances that lead to changing profits are usually incremental and partially anticipated in advance. Thus the gains from substantial gaps in the financial markets are rare exceptions rather than common ...
Topic Outline - Matthew H. Shapiro
Topic Outline - Matthew H. Shapiro

... Central Bank and the Money Supply Name of the USA central bank: ...
International Financial Management
International Financial Management

Cost of Foreign Debt Versus Equity
Cost of Foreign Debt Versus Equity

Chapter 8: Wages, Rent, Profit, and Interest
Chapter 8: Wages, Rent, Profit, and Interest

... A positive economic profits is the income paid to owners of a business after all other resource payments have been made ...
True Value and the Great I Am
True Value and the Great I Am

... Over the summer, the price of oil spiked to $145 per barrel. Many folks said that the move from $90 to $145 at the time was based on the strong fundamentals of emerging market demand. As our readers know, we believed the spike had more to do with "fund flows gone wild" or the desire from many to own ...
< 1 ... 157 158 159 160 161 162 163 164 165 ... 178 >

Present value

In economics, present value, also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is always less than or equal to the future value because money has interest-earning potential, a characteristic referred to as the time value of money, except during times of negative interest rates, when the present value will be greater than the future value. Time value can be described with the simplified phrase, “A dollar today is worth more than a dollar tomorrow”. Here, 'worth more' means that its value is greater. A dollar today is worth more than a dollar tomorrow because the dollar can be invested and earn a day's worth of interest, making the total accumulate to a value more than a dollar by tomorrow. Interest can be compared to rent. Just as rent is paid to a landlord by a tenant, without the ownership of the asset being transferred, interest is paid to a lender by a borrower who gains access to the money for a time before paying it back. By letting the borrower have access to the money, the lender has sacrificed the exchange value of this money, and is compensated for it in the form of interest. The initial amount of the borrowed funds (the present value) is less than the total amount of money paid to the lender.Present value calculations, and similarly future value calculations, are used to value loans, mortgages, annuities, sinking funds, perpetuities, bonds, and more. These calculations are used to make comparisons between cash flows that don’t occur at simultaneous times. The idea is much like algebra, where variable units must be consistent in order to compare or carry out addition and subtraction; time dates must be consistent in order to make comparisons between values or carry out simple calculations. When deciding between projects in which to invest, the choice can be made by comparing respective present values of such projects by means of discounting the expected income streams at the corresponding project interest rate, or rate of return. The project with the highest present value, i.e. that is most valuable today, should be chosen.
  • studyres.com © 2025
  • DMCA
  • Privacy
  • Terms
  • Report