Introduction to Present Value

A choice between money now and money later.

Category:

Education

Tags:

• present
• value
• finance

[vitaminenoi]

I just came across you videos ,and let me tell you that whatever you did , you did not due for nothing you are helping people to understand what they did not in class

English is the 5 language to me and from reading the book they give me i couldn't understand a darn thing ,honestly i spent 1 whole day on translating in different languages to have a clearer view , but You, you did a miracle A deeply Thank you, keep up the good work and enlighten us who are walking in the dark corridor of Finance

[vilpraia]

Mate these videos are so much helpfull and very clear to understand, you have a great approach of teaching, well done!!

[devbodaghe]

shouldnt he had divided by .05 instead of 1.05

[KATOMATE01]

Please explain to me how banks are risky now a days? lol had to exit after that one buddy...ever hear of FDIC?

[navkikkeri92]

2012 and still watching

[hirutasfaw]

excellent presentation and very easy to understand. Thank you

[TheErpuzzetta]

lets assume i have a risk free wank

[TheStfu1000]

but if you decided to take 90$ and times it by 1.05% and then you divided 110$ by 1.05. then the present value of 110$ wouldn't be greater than the the number you get from 90*1.05. so how do you come up with the initial numbers? i knew finance would be hard can someone help.

[sleepyhappiness]

@celestin50 formula isn't always the easiest or best way to learn. I prefer this teaching method, I can always go back and find formulas later after I understand what I'm actually doing.

[HaHaStuPadasso]

@jadedconformist He did compare the 104.76 to the $100 in the very first example. 100 is the PV of 105. 104.76 is the PV of 110. 104.76 > 100 so you would take the $110 a year from now. Got it?