Present value

I have few questions related to present value and future value. I watched your lectures and understand the calculation part but didn’t get the reasoning behind it from the preceptive of an investor!

Is it true that:

1) Present value can be used by the investors for the purpose of borrowing and investment. What I mean is that the investors used the present value to see how much they have to borrow or invest today to get a certain amount of liability or income in the future?

2) The purpose of calculating the present value for borrowing is to find out how much money we have to borrow today to get a specific amount of liability in the future. For instance, IF the investors know that they will be paying a liability of $100,000 to be paid within one year’s time for borrowing the money then they can find out the present value for how much they have to borrow today?

3) For example, if we are paying a liability of $100,000 to be paid in one year’s time at interest rate of 12% then we need to borrow a principal amount of $107,142 but in real life this is not a problem because we would be known the principal amount plus interest by the banks.

4) The purpose of calculating the PV is that so we can record the balances at their present value in our Financial statements (that’s it?)

5) Similarly, the purpose of calculating the present value for investment is to find out how much money we have to invest today to get a specific amount of income in the future. For instance, IF the investors know that they will be earning an income of $120,000 to be paid within one year’s time then they can find out the present value for how much they have to invest today?

6) For example, if we are expecting an income of $120,000 to be received in one year’s time at interest rate of 10% then we need to invest a principal amount of $109,090 but in real life this is not a problem because we would be known the principal amount plus interest earned by the banks.