Annuity Values Made Simple 💰
Present Value (PV):
*"What’s future money worth TODAY?"*
→ The lump sum you’d accept NOW instead of future payments.
*Example*: "Would you take $430 today or $100/year for 5 years?"
Future Value (FV):
*"How much will my savings grow to LATER?"*
→ The total you’ll have by saving regularly + interest.
*Example*: "Saving $100/year at 5% = $550 after 5 years."
Key Difference:
- PV = Time machine (future → today). 🕒
- FV = Crystal ball (today → future). 🔮
Pro Tip:
Money today > money tomorrow (thanks to interest!).
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