InvestorQ : Can you tell me how to compute the present value of money?
Nishant Chandani made post

Can you tell me how to compute the present value of money?

Answer
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Abhi Yadav answered.
1 year ago


If a sum is invested today, it will earn interest and increase in value over time. The value that the sum grows to is known as its future value. Computing the future value of a sum is known as compounding. The present value of a sum is the amount that would need to be invested today in order to be worth that sum in the future. Computing the present value of a sum is known as discounting.