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Essay Details:
Essay text:
AMOUNT PROBLEMS
A. The Future Value of an Amount
The expression relating future and present values of a single amount is developed in terms of the future value factor and the associated table.
Problem solving technique is introduced.
Applications include deferred payment terms as the equivalent of cash discounts and the opportunity cost rate.
Financial calculators are introduced and instruction is provided on their use in solving time value problems.
B. The Expression for The Present Value of an Amount
An alternate formulation emphasizing the present value in terms of the future value. More on technique...
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