When we study present and future value in calculus, usually we’re trying to calculate the amount a sum of money will be worth in the future after it’s had time to grow and earn interest, or we’re trying to calculate how much money we had in the past given the sum of money in the account today. The present and future value formulas we use will vary depending on the rate at which interest is compounded, and whether we’re calculating the value of a single deposit, or a continuous income stream.
Read MoreKeep in mind that present value is the opposite of future value. Future value is how much we need to have at some point in the future; present value is how much we need to have right now.
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