AHRM 2304 Lecture Notes - Lecture 2: Estate Planning, American Express, Goal Setting
26 Jan 2017
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A method by which one can compare cash flows across time, either as what cash flow is worth today (present value) or what an investment made today will be worth in the future (future value) A dollar today is worth more than a dollar in the future. Use time to make money work for you! Tvm is an incentive for saving and/or investing. What will an investment be worth after a period of time: this question asks for future value. How much has to be put away today to provide some dollar amount in the future: this question asks for present value. When interest on an investment itself earns interest. Best way to build investment values over time. The way to build wealth is to make money on your money. Those who understand the concept of compounding understand how to get rich. Financial statements one way to determine financial health. Fundamental beliefs that define your financial success.
