Would you rather have a million today or

Present value 'discounted' vs future value 'compounded': FV = PV (1+r)n

If one takes a penny to the bank, with a future value compounded at, say 20%, one could secure a loan, which in turn could be invested for a much greater RoI. Purely from numbers, and business perspective, future value is greater than present value, however with our being Muslims, 'interest' is an important factor to consider.
 

Trending

Latest posts

Top