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.
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.
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!
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.
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!
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.
THANK U SOOO MUCH, YOUR EXPLANATION IS A LOT EASIER TO UNDERSTAND
julielovesoca 3 days ago
But the main question is... why would you give us $100 dollars? D: ~
Gecasth 1 month ago 2
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.
TheStfu1000 3 months ago
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.
insomniacgrace 3 months ago
Today Sal, please. By the time you finish, I would have the $110.25
basher3804 4 months ago
date online bit.ly\pqcesS
m3Florence769 5 months ago
online date bit.ly\pqcesS
qsMegan854 5 months ago
Hahah, that would be a dedicated banker, the sun goes nova, the universe goes heat death, but you're still getting your money!
trelokamenos 6 months ago
Lol @ 4:54 the answer 105*1.05 was already there XD Thanks a lot for the video.
Seguris 6 months ago
THANKS SAL!!!
Zander101084 6 months ago
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!!
infus1on 8 months ago
i want a virtual TI-85 too :D
haseebahmed07518 10 months ago
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!
burbuja0512 1 year ago
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.
krizutch 1 year ago
@krizutch
He was answering a question.
EuchridEucrow1 9 months ago
OMG~~~thx so much....now i finally understand wat all this is about!!!
heart258 1 year ago 3
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
Letitbeism 1 year ago
thank you very much!
prinsessan11 1 year ago
Really very useful.. finally i understood PV .. Thanks a million
flowerjasmin 1 year ago
"if the sun does not supernova"
ROFL
thegoonist 1 year ago
isn't the year 2 choice one result 110.25 :D
Gamefreakztube 1 year ago
Comment removed
kingcrownover 2 years ago
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!
LugZ1981 2 years ago
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BrittPhillips 2 years ago
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 :(
chubbychilli 2 years ago
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.
esend7881 2 years ago
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.
l3lur 2 years ago 16
As simple as it gets. Thanks!
Allmyinfoisunreal 2 years ago
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.
buredtx 2 years ago
This comment has received too many negative votes show
sal !!!you gotta be kidding ! stop bullshiting and get on with it !
andykelly1 2 years ago
Just great...!!! You made something complicated so easy to understand in principle...i also love the virtual calculater!
simplica1 3 years ago
Great Sal! Thanks a lot! I love your style of teaching on pen-scribbing paper! Genious!
t5productions 3 years ago
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.
memphisarab 3 years ago
go back and review the previous Present Value video
ananihdv 3 years ago
were do you get the 1.05?
50CalPaintballSniper 3 years ago
1 + 5% = 1.05
rseshadri 3 years ago
1 = 100% which is the principal amount + .05, the interest rate.
memphisarab 3 years ago
Principal + Interest = Principal * (1+rate*no. of years)
Therefore, Total = $100*(1+0.05*1) = $100*1.05
ananihdv 3 years ago
Awesome! I'm doing my MBA and learning about NPV/PV/FPV right now and have found your videos extremely useful!!!
sagevadi 3 years ago 11
THANK YOU, THANK YOU!
delightP 3 years ago