# Finance Assignment Help With Present Value Of A Single Sum

## 3.4 Present Value of a Single Sum

Present value is the amount of money that must be invested today, at a given rate of return over a given period of time, in order to get a specified Future Value.

A dollar today is worth more than a dollar tomorrow. Same thing applies here also. If you are offered the choice between \$ 100,000 now and \$ 100,000 at the end of the year, you naturally take the money now to get a year's interest.

We have seen that \$ 100 invested for 1 year at 6 percent will grow to a future value of 100 × 1.06 = \$ 106. Let’s turn this around: How much do we need to invest now in order to produce \$106 at the end of the year?

Thus the formula for calculating Present Value is:

### Following are some of the topics in Time Value of Money in which we provide help:

Corporate Finance Homework Help | Finance Assignment Help | Finance course help | Finance Homework Help | Finance Online Help | Finance Problems Help | Finance Tutor | Help With Finance Homework | Online Tutoring

Basic Subject
Computer Science
Engineering