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There is nothing more central
to most introductory finance classes than
the idea of the time value
of money. Unfortunately few topics confuse
students more.
Try to always keep in mind
what you are trying to solve.
1. Present Value calculations
deal with how much something is worth today
given a set of assumptions
about the future.
2. Future Value calculations
deal with how much money you will have in the
future given a set of assumptions.
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