Time value of money | Interest and debt | Finance & Capital Markets | Khan Academy

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To get Present Value= Future Value÷(1+rate)^no. of years.
e.g. PV= 121÷ (1.1)^2=$100
$21 is the interest
Note: solve first the exponent then divide from FV.

To get Future Value= Present Value x (1+rate)^no. of years
e.g. FV= 100 x (1.1)^2 = $121
$21 is the interest
note: solve first the exponent then multiply from PV to get FV.

God bless you. I have the absolute WORST textbook rightnow for my finance class lol so thank you

Just what I need

Great lessons ready to learn time value money 2023. This is my goal

I’ve already donated and I don’t have access

Thank you. I appreciate your videos.

Thanks for this. One note, probably more accurate while equally easy to use 1% instead of 10.

This is awesome. Well explained, thanks.

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Thank you Khan , your lectures help me a lots in financial management classes.Thank you God bless u and never give up on us.

this helped thanks khan!

I need to know this stuff very important

I think time is invaluable, meaning nothing can value as much as time in its infinite scope (just a cultural opinion of mine) in any given week you could make a ridiculous life changing sale, or find inspiration to the next big brilliant business idea that pulls through. Anything could build up to, through time. But I guess a big point of money is to, overtime, as a society, value things as we see them (supply and demand). I bet this too is why then interest rates are so studied by the Fed, because whatever interests over time in an economy, defines spontaneously what our society values the future as (and money flow over time) - monetarily. Without that in mind, I bet that’s what happened to banks and individuals in the 1920s, too much trust in our system without thinking of how an economy can flow over time, thinking the now rather with eternalperspective, so there was a huge spill that broke our system (our trust)
These are just thoughts I had running in my head while watching the video

You're way to smart to be human. Just saying...

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You can start a business at any given time but you can't grow nor get to a standard level without investing.

Medalsix Dhar
Roll No:148(morning)

What if we find the present value of $65 through this way: First find 10% of $65 and then subtract that amount from $65.
10% of $65 : 10 x 65 /100 = 6.5
65 - 6.5 = 58.5
What is wrong with my way of solution?