CALCULATE: If you have an investment that you know
what the future sum will be (or an estimate of what it will be) and you want to
determine how much to pay for it to earn a desired return.
I would like to borrow some money from you today. I can pay you back in 3 years
from the sale of some stocks. My stocks should be worth $50,000 in 3 years. How
much will you loan me if you receive $50,000 in 3 years if you
desire a 15% return on your investment. (I would also be willing to make
equal monthly payments too, click
note:The result is a negative number
because it is a cash outlay.