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The purpose of using basic structure, such as 'This because of that …' is to
Present Value
The modern equivalent value of a future monetary sum or cash flow sequence, with an established return rate.
Interest Rate
The percentage charged on a loan or paid on deposited funds, representing the cost of borrowing or the gain on savings.
Future Value
The value of a current asset at a specified date in the future based on an assumed rate of growth.
Present Value
The current valuation of a future financial sum or stream of payments, factoring in a set rate of return.
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