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18-07-2018
Business

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about how much is present value of a dollar that be paid to you in three years if the interest rate is 5 percenr

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01-08-2018

The present value of a dollar would be calculated as -

1 dollar X Present value factor of $ 1 @ 5 % for three years.

Present value factor of $ 1 @ 5 % for three years = 0.8638

Present value of $ 1 after 3 years = $ 1 X 0.8638 = $ 0.8638

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