Time Value of MoneyWhy a pound today is worth more than a pound next year.Business & ManagementPresent value equals future value divided by oneplus the rate, raised to the number of periods.PV = FV ÷ (1 + r)^n£1,000 in 3 years at 8%£794 today1000 ÷ 1.08³.PerpetuityPV = cash flow ÷ rA constant flow forever.Growing perpetuityPV = CF ÷ (r − g)The Gordon growth model.THE COMMON MISTAKEAdding cash flows from different yearsDiscounting each to today firstCash in different periods is not the same unit. Adding them is like adding poundsto dollars.The discount rate carries the risk. A riskier project needs a higher rate,which lowers the present value.Time Value of Moneylearnposters.com
Time Value of Money — printable business wall chart from LearnPosters. Free vector PDF, US Letter and A4.

What’s on the Time Value of Money poster

The rule, 3 worked examples, and the mistake everyone makes.

The discount rate carries the risk. A riskier project needs a higher rate, which lowers the present value.

Questions about the Time Value of Money poster

What’s on the Time Value of Money poster?
The rule, 3 worked examples, and the mistake everyone makes. Present value equals future value divided by one plus the rate, raised to the number…; PV = FV ÷ (1 + r)^n; £1,000 in 3 years at 8% = £794 today; Perpetuity = PV = cash flow ÷ r; Growing perpetuity = PV = CF ÷ (r − g); Common mistake: Adding cash flows from different years → Discounting each to today first. The discount rate carries the risk. A riskier project needs a higher rate, which lowers the present value.
Who is the Time Value of Money poster for?
Time Value of Money belongs to the Business & Management section rather than to a school year, because business is not something one grade owns. Anyone learning business finance can pin it up — a beginner, a student mid-course, or someone revising years later.
When should you use the Time Value of Money poster?
Discounting converts future cash to today's terms. Every valuation rests on it. A wall chart earns its place by being glanceable from where the work is happening, so Time Value of Money belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
What other posters go with Time Value of Money?
The Balance Sheet, Break-Even and Budgeting sit alongside Time Value of Money in the Business & Management section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.The Balance SheetBreak-EvenBudgeting
Is the Time Value of Money poster free to download and print?
Yes. Time Value of Money downloads as a free PDF with no account, no email and no watermark, like everything else in the Business & Management section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
What size does the Time Value of Money poster print at?
Time Value of Money is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of Time Value of Money loses nothing.Printing guide

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