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Q) For an investment period of three years Mr X intends to save the following amounts: $2,000, 2009, and $3,000, respectively
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Answer #1
We must save $6,811.50 today
Statement showing Computations
Statement showing Cash flows
Particulars Time PVF 4.65% Amount PV
Cash Flows                           1.00                    0.9556                2,000.00                1,911.13
Cash Flows                         2.00                    0.9131                2,500.00                2,282.77
Cash Flows                         3.00                    0.8725                3,000.00                2,617.60
Present value of Cash Flows                6,811.50
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