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What is the current value of a future sum of money called?

 Oct 5, 2017
 #1
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It called “A Bird in Hand”

See, a bird in hand is worth two in the bush. 

So, future money is called “Two Birds in the Bush,” and present money is called, “A Bird in Hand.”

 Oct 5, 2017
 #2
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PV =Present Value

FV =Future Value

R, or i = Rate of return or Interest

N = Number of periods.

 Oct 5, 2017

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