Against the greatness of the value of money over time. Albert Einstein once said that as "a genius and the best invention of the century". As well as time, money can only be used in a different occasions simultaneously. That's why we need really - really made the right choice among several options financial goals. You need to consider the value of money over time, the intention is to increase the amount of money due to the amount of interest generated. At present, saving and investing will be a greater benefit in the future in comparison with spending
SIMPLE INTEREST
simple interest is the excess of the amount of money you borrow or invest. Simple interest calculation is composed of three parts, namely the amount of money, the amount of interest charged, and time.
Where a simple interest calculation formula, is
INTEREST = AMOUNT * AMOUNT RATE * TIME
the amount of interest determined in the year to calculate the percentage for should change 12% to 0.12 or 12/100. and, for the calculation of time you must also change a decimal or fraction. For example, three months of the year is calculated to be 0.25. what if time is needed 2.5 years? You can count to 2.5
FUTURE VALUE
future value is the value at which the amount of money will grow if it receives interest within a certain time. Calculation process is also called compound interest or compound interest.
FUTURE VALUE ANNUITY
Future value of an annuity is a savings mas financial resources will be undertaken on a regular basis to produce the desired amount of funds
The calculation of the future value of an annuity will provide different results if you do the investment at the beginning or end of the year.
PRESENT VALUE
present value is the value today of a sum of money that will be received in the future.
PRESENT VALUE ANNUITY
annuity present value is the value today of a payment of certain funds performed regularly over time. In other words, the amount that you have a tube with a certain interest rate for a certain sum of money regularly in a certain period of time.
The calculation of the present value of the annuity will also give different results if you do the investment at the beginning or end of the month.
No comments:
Post a Comment