Demonstrate the ability to calculate both the future value

Reference no: EM13387128

Demonstrate the ability to calculate both the Future Value and Present Value formulas (over a period of *at least* 3 years). While Future Value scenarios are pretty easy for most students to come up with (such as a donor asking you to choose between a donation of $XXX.XX dollars today or $XXX.XX in 10 years), many students struggle coming up with realistic scenarios to use the Present Value calculation. If you're struggling with coming up with a scenario for using Present Value, you can use the donor scenario above in ether direction (calculating either the PV of a future contribution or the FV of a contribution now will allow you to compare apples to apples). Please do NOT use the same values for each calculation, but rather describe two different scenarios. You can check your work online with any one of many online PV and FV calculators.

Reference no: EM13387128

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