The Logic of Discounting

p {margin: 0; padding: 0;} No. Date The economy the logic of discounting Money earn Compound inforest overtime Future Value . Present Value X (1+1) IF FVc PV X (ITI) then Pv= Fv FV > PV CittJ Titzo Future I Present Value FV= PV(1+1 T= interest rate. t : (years) (Choth) PV = fv (1++)+ - -Interest take has to be - 0 Moneg is more - time has to be positive Valuable in the when t: 0 Present PV = FV - Generally dis counting the future value.