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Mahesh Reddy

Semi qualified CMA (...ย โ€ขย 2m

Hey founder๐Ÿ‘‹ Ever wondered how much your money can grow over time? Let me break down the concept of Future Value (FV) Whatโ€™s FV? Itโ€™s the value of money at a future date, considering interest or growth over time. Think of it as how โ‚น1 today can turn into more tomorrow, thanks to compounding! Example: Imagine you invest โ‚น1 lakh at an annual interest rate of 10% for 3 years. Hereโ€™s how we calculate its FV: - Year 1 = โ‚น1L ร— (1+0.10)^1 = โ‚น1.10L - Year 2 = โ‚น1L ร— (1+0.10)^2 = โ‚น1.21L - Year 3 = โ‚น1L ร— (1+0.10)^3 = โ‚น1.33L **Future Value (FV)** = โ‚น1.33 lakh ๐Ÿ’ธ

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Mahesh Reddy

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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

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Mahesh Reddy

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