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The concept of present value: If you put money in the bank with an annual interest rate of 5% then, $100 invested today 5% interest
The concept of present value:
If you put money in the bank with an annual interest rate of 5% then, $100 invested today 5% interest rate paid by the bank 5.00 interest paid by the bank $105 Amount of your money in the bank after 1 year.
So in the above example the present value is $100 and the future value is $105.
Is this how present value works?
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