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5.2.2 PRESENT VALUE FOR COMPOUND INTEREST
Instructions: Use the following tutorial to help
introduce or reinforce the concept of Present Value for Compound Interest.
Read through the introduction, then study and familiarize
yourself with the definitions of terms. Next, use
the incremental calculator to study each step of
the process of determining Present Value for Compound Interest.
Finally,
use the calculator for examples to quiz yourself.
The present value formula allows one to
determine how much money
should be invested at a fixed rate in order for a
certain sum of money to
be accumulated at some future date.
The following is the formula for present value:
P = A(1 + i)-n
Table of Contents:
Definitions
Incremental Calculator
Calculator
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