Fundamentals Of Financial Management
Fundamentals Of Financial Management
14th Edition
ISBN: 9781305629080
Author: Eugene F. Brigham, Joel F. Houston
Publisher: South-western College Pub (edition 14)
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Chapter 5, Problem 7P
Summary Introduction

To determine: The present value and the future value.

Present Value: The present value refers to that value, which is the current value and by which the future value of the annuity is determined. The calculation of the future value depends on the present value which is calculated at a discounted rate.

Future Value: The future value means that value of the investment, which will be realized in the future. With the help of the calculation of future value, an analysis of the amount to be invested can be made. This is very useful for the financial users and investors.

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Fundamentals Of Financial Management

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