The money calculators are used to bring out the value of money in the future and in the present time and because of this the value of money calculator is so high. The calculators need certain data to bring out the exact present and future value of the money.
The calculators provide the investor with the opportunity to evaluate the influence of the opportunity costs on the cash flow, which can be gained from a particular investment. The calculators need the exact amount of investment, the cash flow and the opportunity price to bring out the perfect calculation.
The calculations are used to bring out the present value of money and at the same time, also bring out the influence of time on the value of the money at time of return. The value of money is calculated in two forms. The forms are present and future value of money.
The present value of money is the exact amount one can receive at present from his or her investment. According to this value, if anyone is getting $1000 at present, the present value of that money is the same.
At the same time, if someone is investing money and is assured to receive $1000 after one or two years, the present value of the same money is not equal to $1000. This is very simple because the money, which is invested for one or two years, is going to increase because of the interest. The present value does not include the interest with it.
The time value of money is divided in the present value and the future value of money. The theories related to the money holds that money and time are co-related and time increases or decreases the value of money. The money calculators can bring out these values in no time. The value of money calculator is so high because the results, which are provided by these calculators, are very useful for the purpose of investment and business. It is also important for doing financial calculations and to compile economic data.
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Last Updated on : 26th June 2013