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Advances in Management & Applied Economics, vol.1, no.1, 2011, 93109 ISSN: 17927544 (print version), 17927552 (online) International Scientific Press, 2011Present and future value formulae for uneven

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How to fill out present and future value

01

To fill out present value:

02

- Determine the future value that you want to calculate the present value for.

03

- Decide on the interest rate or discount rate that will be used to calculate the present value.

04

- Estimate the time period over which the present value calculation will be made.

05

- Use the formula: Present Value = Future Value / (1 + interest rate)^time period.

06

- Calculate the present value using the values determined above.

07

08

To fill out future value:

09

- Determine the present value that you want to calculate the future value for.

10

- Decide on the interest rate or discount rate that will be used to calculate the future value.

11

- Estimate the time period over which the future value calculation will be made.

12

- Use the formula: Future Value = Present Value * (1 + interest rate)^time period.

13

- Calculate the future value using the values determined above.

Who needs present and future value?

01

Present and future value calculations are commonly used by individuals, businesses, and financial institutions for various purposes, including:

02

- Financial planning: Individuals and businesses use present and future value calculations to plan for savings, investments, loan repayments, and retirement.

03

- Investment analysis: Investors and financial analysts use these calculations to evaluate the profitability and risks associated with different investment opportunities.

04

- Valuation: Present and future value calculations are used to determine the worth or value of assets, businesses, and financial instruments.

05

- Loan and mortgage calculations: Lenders use these calculations to determine loan repayment amounts and interest rates for borrowers.

06

- Insurance: Present and future value calculations are used in actuarial science to assess risks, determine premiums, and estimate future claim values.

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What is present and future value?

Present value is the value of a sum of money in today's terms, while future value is the value of a sum of money at a future date after earning interest or investment returns.

Who is required to file present and future value?

Individuals or entities who have financial assets or investments that need to be evaluated and reported may be required to file present and future value.

How to fill out present and future value?

Present and future value can be filled out by calculating the current value of assets or investments and projecting their value at a future date based on interest rates or investment returns.

What is the purpose of present and future value?

The purpose of present and future value is to accurately assess the worth of assets or investments in today's terms and predict their value at a future date for financial planning purposes.

What information must be reported on present and future value?

Information such as the current value of assets, interest rates, investment returns, and projected future value must be reported on present and future value forms.

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