For each of the following, compute the future value: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16 Present Value $ 2,350 10,053 105,305 243,382 Years 7 20 14 30 Interest Rate 18 % 10 % 11 % 3% Future Value

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.