Present value : Present value is a present value of that money which will be received at some future date. It determines the value of future money at present time. It is today’s value of future sum that is going to be received future time. Present value is current worth of the money which is to be received on future time. Future value : Future value is the value of the present amount of money at some future date. It is the value of current some of money after some future date. The value of money doesn’t remain same due to various factors. Future value determines that value of present amount which will be derived after some period of time in coming future. To determine: The time period.

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Chapter 4, Problem 39P

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Present value: Present value is a present value of that money which will be received at some future date. It determines the value of future money at present time. It is today’s value of future sum that is going to be received future time. Present value is current worth of the money which is to be received on future time.

Future value: Future value is the value of the present amount of money at some future date. It is the value of current some of money after some future date. The value of money doesn’t remain same due to various factors. Future value determines that value of present amount which will be derived after some period of time in coming future.

To determine:

The time period.

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