Future worth present amount

The amount of a loan is known as the principal. The longer the period of time for which the principal is loaned, the greater the total amount of interest paid. Thus, the future worth of the money F is greater than its present worth P. The relationship between F and P depends on the type of interest used. 

Future sum Future value Future worth Future amount Principal Present worth Present value Present amount... 

S = future worth-amount of principal or present worth plus interest due... 

The time value of money recognizes the fact that an amount of money at the current time, referred to as present amount, present sum, present value, or present worth and given the symbol, P, may not be the same at a future date. Instead, if that money is invested at an interest... 

In this section, so-called ordinary annuities are defined, in which the payments are made at the end of each of n interest periods and interest, i, is compounded per period. The annuity begins at the start of the first period and finishes at the end of the last period with the duration referred to as the annuity term. At the close of the last period, the future worth, F, of all of the payments made is known as the amount of the annuity. A number of formulas are derived or presented below in this and the subsequent subsection of Section 17.5. For convenience, they are summarized in Table 17.7. Less common than ordinary annuities and not discussed here are annuity due, in which payments are made at the beginning of the period, and the de-... 

Another aspect of inflation is its effect on purchasing power, both for consumers and com panics. Equation (17.12) gives the future worth of a present amount of money, if it earn compound interest. 

Thus, when inflation is not taken into account, the future worth after 10 yr is almost twice as much as the present amount. 

The definitions of the terms encountered in discounted cash-flow calculations are taken from the literature.1 3 Discounted cash flow is concerned with the analysis of the value of money as a function of time. The money available at a future date has less value at the present and should be discounted by the interest to present worth (PW). P is the notation for the present sum of money, which should be used in such a manner that it produces a future income more than other forms of investment, irrespective of whether it is used for new equipment or the corrosion mitigation process. Let F be the amount of money available in the future when an investment of P is made. The relation between P and F may be written as ... 

It is often necessary to determine the amount of money which must be available at the present time in order to have a certain amount accumulated at some definite time in the future. Because the element of time is involved, interest must be taken into consideration. The present worth (or present value) of a... 

Most investments are judged using a model that is similar to the VP model used here, but more sophisticated. The starting point is that money is expected to deliver a certain return r (Figure 16-18). For the purpose of this explanation we give r a value of 0.1 per year ( a 10% return ). As a result, 100 at this moment will have become 110 in a year, 121 in 2 years and so on. Conversely 100 in a number of years will be worth less at this moment. So amounts of money that we pay or receive in the future are worth less in current terms than they would be otherwise. Note that PV (Present Value) is not the same as VP (Value of Project). 

To better see the importance of the effect of the reduction of the critical thickness in stacked layers in future QD-based tunneling devices, we have realized a 10-bilayer stracture, in which the Ge deposited amount was kept constant in all layers. The Si spacer thickness between adjacent islands was chosen to be 2.5 nm, a value typically used in tuimeling devices. It is worth noting that as the height of capped islands in the first layer is about 7 run, the total thickness of the spacer layer is 9.5 nm. This amount was then kept constant in all layers. Fig. 3(b) shows a typical TEM of such a structure. In contrast to the image of Fig. 3(a), the present image clearly shows that the Si spacer layer is not thick enough to completely cover... 

The present worth of an annuity, P, is the amount of money at the present time that if invested at a compound interest rate will yield the amount of the annuity, F, at a future time. This is useful for determining the periodic payments that can be made over a specified number of years in the future from an annuity. 

P(1 + i) dollars at the end of the second year. Now by following Table 20.2 you can see how the interest earned and the total amount are computed for the third, fourth, fifth,..., and the th year. Consequently, you can see that the relationship between the present worth P and the future value F of an amount collecting i% interest compounding amiually after n years is given by... 

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