Whether the formulas of the present and future values depend on the cash flows that occur with annual intervals. Introduction: The present value is an amount that an individual invests at present in order to generate a cash flow in future. The value that is calculated after accumulating the interest for a number of periods is known as the future value .

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Chapter 4.7, Problem 1CC

Summary Introduction

To determine: Whether the formulas of the present and future values depend on the cash flows that occur with annual intervals.

Introduction:

The present value is an amount that an individual invests at present in order to generate a cash flow in future. The value that is calculated after accumulating the interest for a number of periods is known as the future value.

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