The time value of money(1) To study the relationship between a dollar today and a (possible uncertain) dollar in the future Future Present value PV= C 1+r slide 3slide 3 The time value of money (1) The time value of money (1) ƒ To study the relationship between a dollar today and a (possible uncertain) dollar in the future ƒ Future ƒ Present value r C PV + = 1 1