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Present value calculation

If an investor would like to have $9922 in two years, what is the present value that must be invested now to reach that amount if the investor is given a 10% interest rate that compounds annually?

Solution Preview

The answer is $8200 and following are four ways to solve for the answer:

1. Use an HP12C calculator where n = the ...

Solution Summary

The solution presents four methods to calculate the amount including a proof.