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Time Value of Money

 Self-Paced Overview

Present Value

Using Tables to Solve Present Value Problems

Practice Excercise

The following excercise should aid in using tables to solve present value problems. Please answer the questions below and proceed by clicking the Show Answers button located at the bottom of the page.
1. If you want to have $10,000 in 3 years and you can earn 8%, how much would you have to deposit today?
 
 
 
2. If you think you can sell an asset for $25,000 in five years and you think the appropriate discount rate is 5%, how much would you be will to pay for the asset today?
 
 
 


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