Semi qualified CMA (...ย โขย 2m
Hey founder๐ why โน1 today is more valuable than โน1 tomorrow? Let me break down the concept of Present Value (PV)โitโs simpler than you think! Itโs the value of future money today, adjusted for risk and opportunity cost using a "discount rate." It helps you decide whether future earnings are worth the wait! Example: Imagine youโll receive โน10 lakh in 3 years, and the discount rate is 10%. Hereโs how we calculate its PV: - Year 1 = โน10L รท (1+0.10)^1 = โน9.09L - Year 2 = โน10L รท (1+0.10)^2 = โน8.26L - Year 3 = โน10L รท (1+0.10)^3 = โน7.51L Present Value (PV) = โน9.09L + โน8.26L + โน7.51L = โน24.86L
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