Checkpoint Time Value of Money

Present Value is the worth amount of money owned or received at the present time. The present value formula is the core formula used in calculating Time Value of Money (TVM).


PV = present value, FV = future value, i = interest, n = number of periods


Example: If someone invests some money at an interest rate of 16% for 5 periods and ends up with $194, how much money did the person initially invest?


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