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Assume that you would like to put money in an account today so that you have enough money in 10 years. If you would like
Assume that you would like to put money in an account today so that you have enough money in 10 years. If you would like to invest P10,000 in 10 years, and you know you can get 5% interest per year from a savings account during that time.
a. How much should you put in the account now?
b. What are the three most influential components of present value?
c. Why does Present Value (PV) matter?
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