Suppose the annual compounding interest rate is 8% if you want to receive 100 ten years later from today, you need to make one time deposit_____now.
Amount required to be deposited now is equal to the present value of amount required in future.
= Future value/(1+Interest Rate)^Number of years
= 100/(1.08)^10
= $46.3193
i.e. $46.32
Suppose the annual compounding interest rate is 8% if you want to receive 100 ten years...
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