1. Briefly explain the meaning of the term “present value” in your own words. MBA 620

1. Describe briefly the meaning of “present value” using your own words. 2. Explain the definition of “future Value” briefly in your own words. 3. Is $1,500 worth of future earnings if it is financed at a rate of 4.955% over five years? 4. Which of the following features is most likely to increase the value of an individual payment?
MBA 620
Present value is the idea that the money in the future will be worth less than what it was today (Fernando 2021). The idea of present value states that money acquired in the future will be less valuable than the money received in the current. A $1,000 gift is now worth much more than a $1,000 gift after five years. Why? You can invest $1,000 today with the expectation that you will earn a return in the next 5 years (Fernando 2021). The present value of an investment is used to determine the interest rate it could earn. If an investor gets $1,000 today and is able to earn a 5% annual rate, then the 1,000 received would undoubtedly be worth more than the $1,000 they would receive in five years. However, the investor could lose out on any future returns if they wait five years before receiving $1,000. Future value (FV), which is the estimated future value of an asset, refers to the present value of the asset as a function of the expected growth rate in the future. Future value is important for financial planners and financiers as they can use it to forecast the return on an investment. Cont…
Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more