Re: Future Value calculation

Tech-Archive recommends: Repair Windows Errors & Optimize Windows Performance

From: Myrna Larson (anonymous_at_discussions.microsoft.com)
Date: 08/12/04 

Date: Thu, 12 Aug 2004 16:24:53 -0500

Hi, Fred:

I'm confused by your examples. You say (ordinarily) negative is money out of
your pocket, positive is money into your pocket. That's also the way I usually
think of it, too.

But then you say if you are investing money, it's positive. Let's say we're
buying a CD at the bank. I would use a negative sign for this. I'm taking
money out of my pocket and paying it to the bank. And if I get money back from
the bank (a withdrawal), I put it in my pocket, so from the viewpoint of my
pocket, it's positive. i.e. money going TO the bank is negative, coming FROM
the bank is positive.

On Wed, 11 Aug 2004 21:51:32 -0600, "Fred Smith" <fredsmith99@yahoo.com>
wrote:

>While there is a convention for signs (-ve is money out of your pocket, +ve
>is money into your pocket), in fact it doesn't matter as long as you are
>consistent.
>
>PV is normally positive, because you've taken money out of your pocket to
>invest. Follow the same convention with PMT. If you're investing money, it's
>positive; if you're receiving the money (like your withdrawals), it's
>negative. If PV is positive, FV is negative, because the cash flow is in the
>opposite direction.

Relevant Pages

  • Re: Will it flush? will it not flush... that is the question.
    ... you went to the bank and they offered ... raise money by something pretty close to magic (via "fractional reserve ... soe even look like a disease to me.. ... my gut feeling is about if you have one dollar in one pocket and one ...
    (sci.research.careers)
  • Re: Microsoft Money
    ... I use Money 2002 Deluxe and Business with my Compaq Aero 2130 Pocket PC ... My bank will soon drop support. ...
    (microsoft.public.pocketpc)
  • Re: Java and avoiding software piracy?
    ... If I take money from their pocket that they ... be an entitlement to profit, ... Productivity tools can derive money from support. ... I'm ENTITLED by constitutional law to a free market, ...
    (comp.lang.java.programmer)
  • Re: OT - For Hank - another look at 9-9-9
    ... So you really don't believe that the income tax is a fair tax? ... one person ends up with more money AND 'someone else' ... Since _neither_ you or the bank, as a result of your walking by, had any ... both take money out of your pocket, and out of the pocket of somebody else; ...
    (rec.outdoors.rv-travel)
  • Re: Introducing metric
    ... have no sentimental attachment to new money. ... modern pound isn't worth a decent shilling anyway... ... My purse needs a bigger change pocket. ...
    (rec.arts.sf.composition)