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Calculating present value

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The present value of $20,000 (rounded to the nearest dollar) to be received two years from today, assuming an earnings rate of 12% is:

a. $17,860
b. $15,940
c. $14,240
d. $12,720

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Solution Summary

The solution explains how to calculate the present value given the future value

Solution Preview

We are given the Future Value and we have to find the Present Value. To find the Present Value, we ...

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