Homework Answers
CONCEPT OF THE PRESENT VALUE :
The necessary condition for the current estimation of advance mode for "n" years at "r" pace of intrigue is
therefore, pv=[ 1-(1-r)^-n/r ]
where PV = present value and p = payment
- Present value (PV) is the present estimation of a future aggregate of cash or stream of incomes given a predefined pace of return.
- The current worth is basically the present estimation of all the pay produced by that interest later on.
- On the off chance that you might want to ascertain the future installment administrations, you have to utilize the recipe that figures PV of a conventional annuity.
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