Define the term present value, and provide an example

Oracle 12c: SQL
3rd Edition
ISBN:9781305251038
Author:Joan Casteel
Publisher:Joan Casteel
Chapter1: Overview Of Database Concepts
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Define the term present value, and provide an example

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Definition of present value:

Present value is the current value of future amount of money or cash flows calculated based on some rate of return.

Its formula is represented as:

Computer Science homework question answer, step 1, image 1

Where, “r” is the interest rate and “t” are the total returns.

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