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[P633]Present Value Of Money
by Ivanovich Cuxev, Iva
Talking about currency values can give most people migraines who may avoid comprehending a valuable piece of information which is crucial when it comes to investments. Present value of money involves the preference of investors who would rather have a set amount of money right now, instead of waiting to receive the same amount in the future.

The present value of money is affected by factors such as inflationary risks and opportunity costs. First, lets define the future value of money. When we talk about the future value of money, we are referring to the interest a set amount of capital will be worth in the future, this concept can be applied to funds deposited in an interest bearing account.

Now that we have established that the present value of money is very important we can analyze how this value can be affected by economic variables such as inflation which involves a constant rise in price levels in relation to a standard purchase power. In other words, a million dollars today is much more valuable than a million in ten years because inflation may raise the price of goods resulting in diminished purchase power and lost interest.

A simple example to illustrate the situation depicted above could be the following:

Lets imagine someone wins the lottery, sells a property/business or settles a case for monetary compensation. Following any of these situations the recipient will end up getting paid several small installments over a set period. If this is the case the total amount of money will get depreciated as time goes by. Ten years latter the interest that could have been earned (opportunity cost) is lost and since prices may have gone up by the effects of inflation now less things can be purchased with the same capital compared to ten years in the past.

Business or property notes, structured settlements and lottery winnings are all instruments that if properly handled can yield attractive return on investments. Now, in terms of settlements, payments that are due are basically interest that hasn't been earned yet. When lawsuits and cases are settled, at times the insurance company invests the settlement amount in an annuity (which is a stream of fixed payments which will be received over a specified period). This funds monthly payments, which is a combination of principal and interest derived from the capital invested. It is for this present value factor that insurance companies pay in installments rather than pay the entire amount. This makes insurance companies extremely profitable in a settlement case.

As you see whoever takes advantage of the present value of future payments first (whether it is you or insurance companies) get the full benefits of a precious investment.

Kingsdown makes three ranges of mattress; the Kingsdown Perfect Partner, the Kingsdown Plush Sense mattress and the Kingsdown Body System mattress. Each offers different characteristics to give the consumer a comfortable mattress. But in order to review Kingsdown mattresses and then decide if they offer good value for money one must understand the niche market that Kingsdown fills.

Companies like Sealy and Serta are well-known in many countries and many consumers feel confident when buying their products. However, Kingsdown is a small, independent mattress manufacturer that specializes in making mid- to high-end mattresses. The company has also been in business a long time; over 100 years.

Over the last 30 years there have been many new designs of mattresses using many different technologies. We have seen the rise in popularity - and then fall - of water beds; we can now buy air mattresses like the Simmons Luxaire mattress; pocket coil spring mattresses like the Beautyrest Pocket Coil system, also from Simmons; the latest innovation of memory foam mattresses from Tempur Pedic; and the marrying together of conventional mattresses with memory foam from Sealy and others.

Kingsdown does not manufacturer any of these types of mattresses. Instead it sticks to what it knows best; innerspring mattresses. This is no bad thing as over 90% of mattresses sold use the conventional, inner-spring coils. The plain truth is that most consumers feel more comfortable sleeping on an inner-spring coil mattress. What Kingsdown does is try to make the best, most comfortable mattress in the mid- to high-end price range.

Kingsdown mattresses use good quality materials but so do all of its rivals. What Kingsdown claims makes its mattresses better than the rest is the use of computer technology in the design process of its mattresses.

The latest offering from the company is the Kingsdown Body System mattress. The coil springs and the materials used are no better than other comparable manufacturers but the company claims that it will be the most comfortable you can buy when used in conjunction with its Dormo-Diagnostics Sleep Machine. Basically, the Kingsdown Dormo-Diagnostics Sleep Machine is a computer system that analyses your body shape, and weight distribution and uses this data against measurements from the result of studies involving millions of people, thousands of mathematical formulas and 18 key statistical measurements. The system is available from all licensed distributors of Kingsdown mattresses and only takes a few minutes to do. A data read out will advise you on the Kingsdown Body System mattress that best suits your requirements.

Whether or not a machine can do a better job of choosing your mattress than your own judgment is debatable but maybe it can? After all, when choosing a mattress you're supposed to lie down on it for at least 15 minutes, try out your various sleep positions, and, ideally, lay down on it in your pajamas - or whatever else you sleep in. Doing this is not easy as most consumers feel very self conscious when lying down on a mattress in a busy department store.

Many people sleep with a partner and Kingsdown have designed a mattress especially for couples: the Kingsdown Partner Perfect. The company claims this mattress is the best and most technically advance mattress for couples. I doubt this is true. The biggest problem with traditional inner-spring mattresses is wave-motion. This is movement felt by one partner when the other moves. This movement is inherent in all inner-spring mattresses because all the coils are interconnected. The wave movement is more pronounced when one partner is significantly heavier than the other. If you have this problem you might be better off looking at other types of mattresses like memory foam from Tempur Pedic or a pocket coil system from a manufacturer like Simmons.

Finally, the company makes the Kingsdown Plush Sense mattress. The main selling point of this mattress is the ProEdge Spring System in the mattress and box spring. The claim is that the ProEdge gives greater comfort with a perimeter that is 20% firmer so giving better edge to edge support. Does a firmer edge give better support? Probably not but some consumers do like mattresses with firm edges. If you like a firm edged mattress then the Kingsdown Plush Sense mattress is a good choice.

Kingsdown do manufacture top rated mattresses and many reviews of Kingsdown mattresses are highly favorable. Before buying a quality mattress you should decide what type best suits your needs. If you prefer traditional, inner-spring mattresses then a Kingsdown is probably as good as Sealy, Serta and Simmons mattress of the same type.

Article Source : business and corporate

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Both Ivanovich Cuxev & Robin Obrien are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Ivanovich Cuxev has sinced written about articles on various topics from Hair Styles, Supplements and Software. PPiCash offers valuable information about the of money. Learn how to use these concepts to. Ivanovich Cuxev's top article generates over 110000 views. to your Favourites.

Robin Obrien has sinced written about articles on various topics from Modelling, Prom Dress and Kids and Teens. Follow the links for more information about a . You can also get. Robin Obrien's top article generates over 165000 views. to your Favourites.
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