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MAT 142 College MathematicsModule #Finance Terri L. Miller & Elizabeth E. K. Jones revised December 16, 20101. Simple Interest is the money earned (profit) on a savings account or investment. Principal
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The present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return.
There is no specific requirement to file or present the present value. It is a financial concept used in various contexts.
The present value is calculated by discounting future cash flows using an appropriate interest rate or discount rate. The formula for calculating present value is PV = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.
The purpose of present value is to determine the current worth of future cash flows or amounts. It is commonly used in financial analysis, investment appraisal, and decision-making.
There is no specific information that needs to be reported on the present value itself. However, when using present value in financial analysis or decision-making, relevant information such as future cash flows, discount rate, and time periods should be considered.
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