Chapter 32.7
Finance: Future value and present value
What You'll Learn
Define present value and future value in the context of financial investments
Apply the compound interest formula to calculate future value from present value
Calculate present value by working backwards from a future amount using discount rates
Convert time periods between months and years for accurate calculations
Distinguish between annual interest rates and annual discount rates
What You'll Practice
1
Calculating future value of investments with monthly and quarterly compounding
2
Finding present value needed to reach a future financial goal
3
Converting time periods from months to years in financial formulas
4
Working with discount rates to determine current investment amounts
Why This Matters
Understanding present and future value is essential for making smart financial decisions throughout your life. Whether you're planning for retirement, comparing investment options, or determining loan payments, these calculations help you understand what your money is really worth over time.
Before You Start — Make Sure You Can:
This Unit Includes
2 Video lessons
Practice exercises
Skills
Future Value
Present Value
Compound Interest
Discount Rate
Financial Mathematics
Investment Growth
Time Value of Money
OH Curriculum Aligned
