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Mahesh Reddy

Semi qualified CMA (...ย โ€ขย 9m

Hey founder๐Ÿ‘‹ why โ‚น1 today is more valuable than โ‚น1 tomorrow? Let me break down the concept of Present Value (PV)โ€”itโ€™s simpler than you think! Itโ€™s 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 youโ€™ll receive โ‚น10 lakh in 3 years, and the discount rate is 10%. Hereโ€™s how we calculate its PV: - Year 1 = โ‚น10L รท (1+0.10)^1 = โ‚น9.09L - Year 2 = โ‚น10L รท (1+0.10)^2 = โ‚น8.26L - Year 3 = โ‚น10L รท (1+0.10)^3 = โ‚น7.51L Present Value (PV) = โ‚น9.09L + โ‚น8.26L + โ‚น7.51L = โ‚น24.86L

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