Posts Tagged ‘Present Value’

 

finance?

Sunday, March 27th, 2011
Finance F asked:


If you are scheduled to receive a certain sum of money five years from now but wish to sell your contract for its present value, which type of compounding would you prefer to be used in the calculation? Why?

 

Finance?

Monday, September 27th, 2010
Finance F asked:


Does present value decrease at a linear rate, at an increasing rate, or at a decreasing rate with the length of time in the future the payment is to be received? Why?

 

Finance?

Friday, September 3rd, 2010
Finance F asked:


Contrast the calculation of future (terminal) value with the calculation of present value. What is the difference?

 

finance?

Thursday, February 18th, 2010
Finance F asked:


If you are scheduled to receive a certain sum of money five years from now but wish to sell your contract for its present value, which type of compounding would you prefer to be used in the calculation? Why?