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Find Present Value of the given investment 6. An investment earns 2% per year and is...

Find Present Value of the given investment

6. An investment earns 2% per year and is worth $10,000 after 5 years.

7. An investment earns 5% per year and is worth $20,000 after 2 years.

8. An investment earns 7% per year and is worth $1,000 after 6 months.

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Answer #1

Present value is the value of an expected income for particular period of time. Usually it is less than the amount of future value. This method is used to calculate value of loans, mortgage, bonds, sinking fund etc.

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