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Present value vs future value

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Present value vs future value

An example of how to calculate Future Value. How much money will I have two years from now if I invest $100 at an expected 20% annual return? Start with $100 today. $100 multiplied by 1.2 is $120. This $120 in turn multiplied by 1.2 is $144. An example of how to calculate Present Value. How much money do I invest today to have $144 two years ...

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