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Get And Sign 166 Loan Application Agreement Cascade Capital Corporation Form

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welcome to Alaniz business academy in this lesson you're going to learn how to solve for the present value first of all the present value reflects the current worth of a future sum of money given a specified rate of return translated into plain English we're expecting some money to be paid at a later date and we want to know what it's worth today due to the time value of money we know that the money that we have today is worth more than that same amount of money in the future this is due to a number of different reasons including inflation and opportunity costs so in order to make an accurate assessment we engage in this process of discounting which means we reduce the value of a future sum of money to account for the time value of money and determine its equivalent worth today say a friend of ours was offering to pay US $500 two years from now if we were to lend him four hundred and fifty dollars today because of the time value of money we immediately know that this $500 doesn't hold

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