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Wal Mart

Time value of money
The concepts of present and future value hinge upon the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. In particular, the time value of money represents the interest one might earn on a payment received today, if held, earning interest, until that future date.
All of the standard calculations derive from the most basic algebraic expression for the present value of a future sum, "discounted" to the present by an amount equal to the time value of money. For example, a sum of FV to be received in one year is discounted (at the rate of interest r) to give a sum of PV at present: PV = FV — r·PV = FV/(1+r).
Some standard calculations based on the time value of money are:
Present Value (PV) of an amount that will be received in the future.
Present Value of a Annuity (PVA) is the present value of a stream of (equally-sized) future payments, such......


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Approximate Word Count: 2930
Approximate Pages: 12 (250 words per double-spaced page)

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