Calculate your present value

Assignment Help Science

Reference no: EM133263929

Question: The concept of Time Value Money (TVM) is that a dollar today will buy more today (or be of greater value) than a dollar next year. Therefore, to determine if someone should make an investment on a renewable energy for their house, they will want to calculate what the present value (PV)of the investment is today, to make sure it will be more than the actual investment. For example, if you are looking to put in a wind turbine in your backyard and the turbine costs $5,000, with an annual savings of $500 over 5 years, and with an interest rate of 3 %, which of the following TVM formulas would you want to use to calculate your PV:

- PV = FV - (i x PV)

- PV = FV / (1 + i)

- PV = (A / I) [1-1/(1 + i) ^n]

- PV = FV / (1 + i)^n

Reference no: EM133263929

Questions Cloud

Effects of the non residential status of students : Write an introductory paragraph on the topic the effects of the non residential status of students of the university

Emotion of a character from a television show or book : An example of a strong emotion of a character from a television show or book.

Identify 3 types of incentives there currently are in u.s. e : ENVS 485 University of Idaho Identify 3 types of incentives there currently are in U.S. Energy Policy and be sure to explain how each incentive works.

What are three types of personal trauma : Individuals who have become victims of personal trauma or are perpetrators of various types of personal trauma often seek assistance by human service profession

Calculate your present value : ENVS 485 University of Idaho with an annual savings of $500 over 5 years, and with an interest rate of 3 %, which of the following TVM formulas would you want

Why paternalism should take precedence in term of undergoing : Debate why paternalism should take precedence in terms of undergoing gender reassignment procedures.

How likely developed 11-12-month-old infants : Is there any current, legitimate research on how likely developed 11-12-month-old infants are to respond to caregivers and produce more vocalization as they gro

Do you think that these types of initiatives are useful : OSH 2302 Columbia Southern University Do you think that these types of initiatives are useful, and has your decision to purchase ever been impacted

Compare the expected climate change impacts on northeast : Compare the expected climate change impacts on the Northeast US with those from the other two regions you read about.

User Account

All Pages