![]() ![]() How much will there be in one year? The answer is $110 (FV). Suppose $100 (PV) is invested in a savings account that pays 10% interest (I/Y) per year. ![]() This increased value in money at the end of a period of collecting interest is called future value in finance. This is also why the bank will pay more for keeping the money in long and for committing it there for fixed periods. This is the basis of the concept of interest payments a good example is when money is deposited in a savings account, small dividends are received for leaving the money with the bank the financial institution pays a small price for having that money at hand. The "time value of money" refers to the fact that a dollar in hand today is worth more than a dollar promised at some future time. Would you rather have this money repaid to you right away in one payment or spread out over a year in four installment payments? How would you feel if you had to wait to get the full payment instead of getting it all at once? Wouldn't you feel that the delay in the payment cost you something?Īccording to a concept that economists call the "time value of money," you will probably want all the money right away because it can immediately be deployed for many different uses: spent on the lavish dream vacation, invested to earn interest, or used to pay off all or part of a loan. Periodic Payment (PMT) can be included but is not a required element. In basic finance courses, lots of time is spent on the computation of the time value of money, which can involve 4 or 5 different elements, including Present Value (PV), Future Value (FV), Interest Rate (I/Y), and Number of Periods (N). At the same time, these website calculators improve customer satisfaction by offering low-pressure decision support that helps educate customers and ensure that they end up with products and services that best meet their needs.Related Loan Calculator | Interest Calculator | Investment Calculator They help increase sales by presenting a compelling, personalized value proposition to prospects at a time when they are most receptive to the message. VisualCalc calculators can help generate awareness for existing and new products by highlighting them in product selector tools. These calculators serve as a guided selling solution, enabling their prospects and customers to quickly and effectively evaluate their products, leading them to the best possible purchase decision. VisualCalc financial calculators help financial institutions generate leads, close prospects, improve customer satisfaction, and optimize their product sales mix. Generate Leads, Close Prospects, Improve Customer Satisfaction The helps consumers quickly and effectively evaluate their financial alternatives, leading them to the best option for their specific needs. The resulting impact of changes to these inputs is immediately shown in easy-to-understand tables, graphs and charts. Using any desktop or mobile platform, consumers can manipulate a set of intuitive input mechanisms, such as buttons, sliders, and input boxes. VisualCalc Calculators address the consumer need for self-guided financial wellness tools, enabling them to perform interactive “what if” analyses related to their financial decisions. Financial services companies that provide consumers with these solutions will improve customer acquisition, service and satisfaction.Īn Interactive, Graphical Tool To Help Consumers Make Self-Guided Financial Wellness Decisions In light of these trends, today’s consumers are looking for self-guided solutions that can educate them on the financial options available, and then lead them to the best products and services for their specific situation. The increasing need for “financial wellness” solutions is driven by a number of industry and societal trends: 1) a shift from professionally managed financial and retirement planning to consumer DIY approaches 2) a move towards Internet-based consumer self-service financial solutions and 3) the expanding range and complexity of consumer financial products and services. ADDRESS CONSUMER DEMAND FOR FINANCIAL WELLNESS SOLUTIONS The broad family of VisualCalc Calculators address a range of income brackets and all stages of a consumer’s financial life cycle. They provide consumers with an intuitive, interactive and graphical tool to easily analyze complex purchase decisions related to a variety of financial services, including credit management, financing strategies, account selection, asset allocation, retirement planning, and a variety of other financial and business alternatives. VisualCalc Calculators help consumers make quicker, better informed financial decisions. Turn-Key Calculators for Easy Deployment on Your Website Help Your Customers Make Quicker, Better Informed Decisions
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