## Fv

Where:

i = Threshold interest rate or discount rate per period n = Number of periods over which the value is calculated PV may be considered the determination of the sum of money that would have to be invested at a given interest rate per year to yield a specified amount at a specified future date. For example, if the annual interest rate were 10%, the PV of $1,000 to be received at the end of a period of 10 years would be calculated as:

$386

Where:

i = Threshold interest or discount rate per period n = Period in which the future amount is earned

For any given discount rate, the PVF can be identified from a standard compound interest table or calculated. For example, given a discount rate of 10%, annual PVFs or discount factors over a three year period would be calculated, based on Equation 42-5, as:

Year 2

Year 3

(1 |
+ 0.10)1 |
(1.10)1 |

## Guide to Alternative Fuels

Your Alternative Fuel Solution for Saving Money, Reducing Oil Dependency, and Helping the Planet. Ethanol is an alternative to gasoline. The use of ethanol has been demonstrated to reduce greenhouse emissions slightly as compared to gasoline. Through this ebook, you are going to learn what you will need to know why choosing an alternative fuel may benefit you and your future.

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