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Math

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Why there’s a need to calculate the future and the present value of money?

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Answer:

The FV calculation allows investors to predict, with varying degrees of accuracy, the amount of profit that can be generated by different investments. Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return

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Answer:

The future value is important to investors and financial planners, as they use it to estimate how much an investment made today will be worth in the future. Knowing the future value enables investors to make sound investment decisions based on their anticipated needs.

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