Present Value 2

[Gecasth]

But the main question is... why would you give us $100 dollars? D: ~

[TheStfu1000]

so basically there exists a sum of money today a sum of money later and a risk free growth percentage in the time period of today to later. you then work out the present value of the later sum by dividing the later sum by the risk free growth percentage. whichever present value is greater is clearly the payment you should choose.

[insomniacgrace]

Wow. amazing. Power of technology nga naman, ang galing. pinadadali nga naman ang buhay. this is so informative and comprehensive. strengthen my capacity to analyze.

[basher3804]

Today Sal, please. By the time you finish, I would have the $110.25

[m3Florence769]

date online bit.ly\pqcesS

[qsMegan854]

online date bit.ly\pqcesS

[trelokamenos]

Hahah, that would be a dedicated banker, the sun goes nova, the universe goes heat death, but you're still getting your money!

[Seguris]

Lol @ 4:54 the answer 105*1.05 was already there XD Thanks a lot for the video.

[Zander101084]

THANKS SAL!!!

[infus1on]

HAHAHA...risk free...if the sun does not go supernova!! lmfao. your videos are really helpful and entertaining. thanks for you time and effort khan!!

[haseebahmed07518]

i want a virtual TI-85 too :D

[burbuja0512]

Love all your videos. I disagree with other comments - I like the tangents! Makes it more interesting and feels like I'm in a classroom :-) Keep up the good work!

[krizutch]

Your tangents are so annoying.. just get to the damn point. We get it, you are the safest person to risk to, we get the government is safe, we get that inflation could occur. you aren't discussing those things...... stay on topic.

This video could have been 3 minutes long if you just stayed on topic and didn't repeat. If we want to repeat we can rewind it. 

[EuchridEucrow1]

@krizutch

He was answering a question.

[heart258]

OMG~~~thx so much....now i finally understand wat all this is about!!!

[Letitbeism]

In choice number two, doesn"t compounding work in reverse? Is it correct to divide by 1.05 of 110 twice? Shouldn't it be a two step process

[prinsessan11]

thank you very much!

[flowerjasmin]

Really very useful.. finally i understood PV .. Thanks a million

[thegoonist]

"if the sun does not supernova"

ROFL

[Gamefreakztube]

isn't the year 2 choice one result 110.25 :D

[LugZ1981]

seriously..I have an assignment due today and I didn't read my chapter...and this video is an amazing refresher of stuff I did 5 years ago. THANK YOU!

[chubbychilli]

Can someone please kindly explain to me why you do not square for choice 1 but you square for choice 2 and 3? Sorry...i'm really basic :(

[esend7881]

Because Sal got the $100 now, in the present. So there is no interest incurred on it, it is exactly 100.

In the other options, the money doesn't come in until the future, so you have to "discount" the money based on the 5% rate.

[l3lur]

I'd also been confuse with PV and stuff. But with this step by step vid. even a retard like me can understand. Thank you and god bless.

[Allmyinfoisunreal]

As simple as it gets. Thanks!

[buredtx]

Thanks you sir! My name is ram from Nepal. I never get time to attend campus(college). Coz i am teaching computer science at school...

thanks......for you time.

[andykelly1]

sal !!!you gotta be kidding ! stop bullshiting and get on with it !

[simplica1]

Just great...!!! You made something complicated so easy to understand in principle...i also love the virtual calculater!

[t5productions]

Great Sal! Thanks a lot! I love your style of teaching on pen-scribbing paper! Genious!

[memphisarab]

Why is $20 in Choice 3 added w/ 50 and 35 whereas Choice 1 and 2 are left alone. I understand the division per # of years. But not sure why Column three is all summed up.

[ananihdv]

go back and review the previous Present Value video

[50CalPaintballSniper]

were do you get the 1.05?

[rseshadri]

1 + 5% = 1.05

[memphisarab]

1 = 100% which is the principal amount + .05, the interest rate.

[ananihdv]

Principal + Interest = Principal * (1+rate*no. of years)

Therefore, Total = $100*(1+0.05*1) = $100*1.05

[LostinArnhem]

Keep bringing in these videos!

[sagevadi]

Awesome! I'm doing my MBA and learning about NPV/PV/FPV right now and have found your videos extremely useful!!!

[delightP]

THANK YOU, THANK YOU!