What is Time Value of Money? | Present Value | Future Value | PMP Exam

There is always a limitation on resources, be it money, material, people or time. Limited resources do not allow us to undertake all the possible projects. Project Managers should be able to evaluate the business cases for each project, prioritize the projects and then pick the ones with the top priority. In this lesson, we will explain the close relationship between money and time. This concept will help us to understand the various means of business case development and project selection.
Time Value of Money: A dollar today is worth more than a dollar tomorrow
What is Present Value (PV)?
What is Future Value (FV)?
How is Present Value related to Future Value?
#Formula for PV and FV
Solved Problems
#SunnySensei

[@prawinankan1547]

Good

[@naveensonkar8714]

A good explanation sir.

[@sunny.sensei]

Thanks, Naveen

[@bonkuroy6549]

Thanks , really made things easier for me. Do let me know if you have anything related to managing P&L of projects/programs.

[@sunny.sensei]

I am happy to know that you found this lesson useful. I have noted down your request about the P&L. I will look into this and hopefully come up with a lesson.

[@bonkuroy6549]

@@sunny.sensei thank you and really so nice of you too...

[@Fa-ft5cl]

Hello sir, i have a question to solve if i can send it on your email if someone could help me? Thankyou

[@sunny.sensei]

Please share the question in comments section. Include your solution/thoughts too. I will look into that and try my best to help you. All the best!!

[@Leannmimo23]

Very good explanation

[@sunny.sensei]

Thank you for your feedback. I am glad you found the lesson helpful.

[@jdloer]

thanks!

[@sunny.sensei]

I am glad that you liked the lesson 😊

[@DjNemes1s]

Very clear and concise explanation with easy to follow worked examples, thank you. Just one minor point is the r (for interest rate) looks very similar to n (for number of years)

[@sunny.sensei]

Thank you for the feedback. I need to work on my handwriting 😀

[@mroyon]

The easiest way to get to the point. loved it. wish to see covering more topics.

[@sunny.sensei]

I am extremely happy to receive your kind feedback. Thank you, Mahmudur, for your encouraging words.

[@rupalirao420]

This was the simplest explanation ever! Thank you

[@sunny.sensei]

I am happy to know that you liked the lesson. Thank you for your feedback.