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Essay text:
If I have a mountain of money after 30 years, what is its actual worth today?
Jinny: Well, you just need to make smart use of your calculator to know that. If somebody promises to pay you Rs1 crore after 30 years, you may feel that after 30 years you would have a mountain of money. But don’t entertain the notion that after 30 years you could lead the lavish life of a present-day millionaire!
You should always compare the future value of your money with its present value to see its true worth. What is its worth now? For that you need to discount the future value of money to its present value by the expected rate of return on present investments...
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