Present Value: Present value of money means the present or current value of a future cash flow at a given rate of interest or return. Future Value: The future value is the value of present cash flow at specified time period and at specified rate of return . We have to determine the rate of interest for this investment.

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Chapter B, Problem 2QS

To determine

Present Value:

Present value of money means the present or current value of a future cash flow at a given rate of interest or return.

Future Value:

The future value is the value of present cash flow at specified time period and at specified rate of return.

We have to determine the rate of interest for this investment.

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