value of sum after investing over one or more periods
$1 today at 12% interest, will be worth $1.12 in a year, and $1.25440 in two years.
Fn = P(1+r)^n
Fn = future value
P = present investment value (one time)
r = interest rate per period
n = number of periods from today
Using Tables
One common method for solving present value problems is to use financial tables (as found in most common text books,or online). The present value tables give you the "present value factor", which can be used simply to find the present value.
All the tables have really done is calculated the exponent for you. For example, a 10 percent interest, for 5 years, will have (1+r)^n = (1.10)^5 = 1.61051 (which you can get by typing in 1.10 x 1.10 five times in your calculator), or you can just look it up in a table, and find 1.61051. So, $1 will be worth $1.61 in 5 years if you earn 10% per year. The 1.61051 is called the Future value factor.
My goal with the site is to create a community where entrepreneurs and influential tech bloggers can collaborate in creating a guide... discussing trends in technology (as well as other trends) that effect investors in new technologies. Bloggers and entrepreneurs gain reputation by contributing content, and leading discussions, and they gain exposure to the community of peers, as well as investors in new technologies. The reputation of leading a discussion on a particular topic should help entrepreneurs (bloggers and consultants) to find financing, find new jobs, or find new business partners,etc... more information here about why / how to contribute...
Our goal is to build the best, most useful wiki for entrepreneurs globally, and to create a community where entrepreneurs can collaborate in creating a guide for startups. Gain reputation by contributing content, and leading discussions. Gain exposure to the community of entrepreneurs and investors. Find financing, find new jobs, or find new business partners,etc...
KookyPlan is for entrepreneurs, trail-blazers, and for un-conventional thinkers who dare to venture into uncharted waters and dream of changing the world with their new innovations.
Comments (0)
You don't have permission to comment on this page.