Time Value of Money
Example: Present value today of a single payment of $1,480.24 made ten years in the future, if the effective annual interest rate is 4% PV = $1,480.24 / (1.04)10= $1,480.24 / 1.48024 = $1, 000 On a financial calculator, the calculation is done by making the following key strokes: ................
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