In my notes, I have an example:
Question: Suppose that John is self-employed and wants to save for his retirement in 20 years. From the time of his retirement onwards he wants to withdraw £1,000 every month at the beginning of each month for 30 years. What amount of money does he have to save every month at the beginning of each month for the next 20 years to fund his retirement? Suppose that the nominal interest rate is 6% compounded monthly.
Solution: The idea is that the forwarded value of the deposits at the end of year 20 should be equal to the discounted value of all the withdrawals at the beginning of year 21......
Can someone explain the differences between 'forwarded value' and 'discounted value' in this context? Please do so in laymans terms, since I'm quite new to all this finance jargon (I know what present value is btw). I did a Google search for 'discounted value' and it comes up with results on 'present value', so are these the same? For 'forwarded value', results come up as 'forward price' but I don't understand what that is