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Question
If a sum of Rs. 1000 is likely to be earned after 3 years, calculate its present value (PV).
Numerical
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Solution
PV = `"FV"/(l + r)^n`
PV = `(1,000)/(l + r)^3`
PV = `(1,000)/(1.10)^3`
= `(1,000)/(1.331)`
= Rs. 751.31
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