# present value

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The present value P that will amount to A dollars in n years with interest compounded annually at annual interest rate r, is given by P = A (1 + r) -^n. Find the present value that will amount to \$50,000 in 20 years at 8% compounded annually.

• present value -

P = 50000(1.08)^-20
= ......

enter 50000 x 1.08 YX 20 ± =
to get 10,727.41

• present value -

122222

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