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Compute the present value

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Question - Recall from the video that if the annual interest rate is 5%, the present value of $127.63 to be received in five years is $100.00. If the interest rate increases, your money is working harder for you. So, you won't need to deposit as much to have $127.63 in five years. To confirm intuition, compute the present value of $127.63 to be received in five years if instead the annual interest rate is 8%?

Reference no: EM133072045

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