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Investing
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Don Smith
Posted 2/9/2019 12:00 (#7308887 - in reply to #7308709)
Subject: RE: Investing



Central Pennsylvania, USA
It depends, on many things, but a good place to start is to evaluate Time Value of your Money for investing in farm and investing in stock market. All financial calculators have a Time Value of Money (TVM) capability.

Below is TVM for 2 cases of opportunity interest rates, 3% and 8%. the 3% represents a "safe" rate, while 8 % represents typical stock market index fund return rates. TVM shown below tells you the value of future money in present day dollars for 20 year investments with quarterly compounding.


Time Value of Money for opportunity interest rate = 3.0 %
future value = 10000
number of compounding periods per year = 4
number of years = 20
value in present day dollars = 5500.42

Time Value of Money for opportunity interest rate = 8.0 %
future value = 10000
number of compounding periods per year = 4
number of years = 20
value in present day dollars = 2051.1
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