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The primary subject from the checklist over is Worth, which refers to present price and upcoming benefit issues. You'll have seen the next two equations previously, the simple derivations of which can be located in any fantastic finance textual content:

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This tells us how to compute the present price of an annuity using the two formulas previously anchor mentioned. Because the future values will be the very same (within our experiment), established the A of 1 equivalent on the A of one other.

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