Tuesday, April 8, 2008

What is the value of your future payments?

Filed under: Structured Settlement — Structured Settlements Pro @ 7:33 am

When considering selling some or all of your future payments for lump sum cash you may want to consider what you can get for your remaining payments. To properly determine how much your payments may bring today you need to factor in the “time value of money.”

The time value of money refers to the calculation of how much a future payment is worth in today’s dollars. The value of a future payment is less today than in the future as funds received today can be invested and earn a return. So the value of $100 dollars today is greater then the value of $100 in ten years from today.

To learn more about the Time Value of Money click here or call a Structured Settlement Transfer company that can tell you what they would pay for some or all of your future payments.

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