Time Value Money

• All things being equal, it is better to have money now rather than later.
• Future Value (FV) for 1 Year Investment
• = Present Value (PV) + Present Value(PV) x Interest Rate
• = PV * (1+ 1x Interest Rate)
• = PV * (1 + Interest Rate)
• Future Value (FV) for 2 Year Investment
• =FV for 1 Year Investment + FV for 1 Year Investment x Interest Rate
• = FV for 1 Year Investment * (1+ 1x Interest Rate)
• = PV * (1 + Interest Rate) * (1 + Interest Rate)
• = PV * (1 + Interest Rate) ^ 2  multiplication of like terms is equivalent to adding their exponents
•  Future Value (FV) for N Year Investment
• = PV * (1 + Interest Rate) ^ N
• Present Value (PV)
• = FV / (1 + Interest Rate) ^ N   
•  I have created a simple excel file to calculate the FV or PV. Click here if you interest to check it out.
• By knowing the time value money, we should aware that time is our good friends as it will help us to create our wealth. We can use this powerful tool to help us to achieve our goal. ( Do set up your goal and work out your own number with the CAGR Calculator )

"Waste your money and you're only out of money, but waste your time and you've lost a part of your life.” - Michael Leboeuf

References:-

• Understanding The Time Value Of Money,  Shauna Carther