(4) What will be present value of Rs. 12,000 at 12% for four year? Annuity value of Rs.
1 at 12% for four years is 3.037 and compound value is 1.574.
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The present value formula is PV=FV/(1+i)n, where the future value FV is divided by a factor of 1 + i for each period between present and future dates. The present value calculator uses multiple variables in the PV calculation: The future value sum. Number of time periods, typically years.
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