Question: Create your own final scenario for this case which applies the use and calculation of: (1) present value (PV) and (2) future value (FV) concepts

Create your own final scenario for this case which applies the use and calculation of:

(1) present value (PV) and

(2) future value (FV) concepts

A PV example I can think of is, you have won the lottery. You may choose to receive half now or the full amount received annually, over 20 years by applying a 6 interest (discount) rate Which do you choose.

A FV example could be, you are 20 years old and want to retire at 55. How much must you put in the bank now to have $2,000,000 at 55, if you can earn 10 on your investments Or, how much would you have to save annually to retire at 55 given a 10 return?

Required: Show your calculations

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