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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Ex 12-17 Â Present value of amounts due
Tommy John is going to receive $1,000,000 in three years. The current market rate of interest is 10%.
a.    Using the present value of $1 table in Exhibit 8, determine the present value of this amount compounded annually.
b.    Why is the present value less than the $1,000,000 to be received in the future?
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