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Archive:Business finance

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Revision as of 03:08, 22 November 2006 by 24.196.6.224 (talk) (Replacing page with '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 earne...')

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.

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