Module+18000+X+Summary+and+Conclusions

X. Module 18000 Summary and Conclusions rrw

**Summary and Conclusions **

**Time Value of Money **


 * __Time Value of Money __** (also, **__Present Discounted Value__**) – Due to its potential earning capacity, money available today is worth more than the same amount in the future. (see Vocabulary)

This module of the wiki introduced students to the terms and definitions associated with the **__Time Value of Money__** (see Vocabulary). The formulas were presented along with the associated variables (see Explanations and Examples). The examples were also worked using Microsoft Excel functions.

In conclusion, with the tools offered in this module of the wiki, it is simple to calculate **__Present Value__** and **__Future Value__**. It is also easy to see that increasing the **__Interest Rate__** or the **__Number of Periods__** will produce a higher **__Future Value__** for the investment. Also, compounding Interest more often (monthly instead of annually) will produce a greater **__Future Value__**.