Archive:Business finance: Difference between revisions
wikademia>Robbimj No edit summary |
wikademia>JWSchmidt |
||
| Line 17: | Line 17: | ||
over time to earn more interest. | over time to earn more interest. | ||
==See also== | |||
[[Topic:Finance]] | *[[Topic:Finance]] | ||
[[Category:Finance]] | |||
Revision as of 01:53, 8 January 2007
The Time Value of Money
Some Future Value Definitions
• Future Value (FV): The amount an investment is worth after one or more periods. • Simple Interest: Interest earned only on the original principal amount invested. More Future Value Definitions • Compound Interest: Interest earned on both the initial principal and the interest reinvested from prior periods. • Compounding: The process of accumulating interest on an investment over time to earn more interest.