Calculating present value and future value using simple interest will result in a smaller PV and FV than the same calculation using compound interest.

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Simple interest calculations result in a smaller future value (FV) because interest is only earned on the principal amount, whereas compound interest earns interest on both the principal and the accumulated interest, leading to a larger FV. However, when calculating present value (PV), the method (simple vs. compound) does not inherently result in a smaller or larger value without specifying the interest rate and the compounding frequency for the compound interest scenario.

Calculating Present Value and Future Value Using Simple Interest Will