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  2. Topic
    Business
  3. Study Set
    Intermediate Accounting Reporting and Analysis
  4. Exam
    Exam 23: Time Value of Money Module
  5. Question
    The Formula to Calculate the Present Value of an Ordinary\[p V o = C \times \left[ \frac { 1 - \frac { 1 } { ( 1 + i ) ^ { n } } } { i } \right]\]
Solved

The Formula to Calculate the Present Value of an Ordinary pVo=C×[1−1(1+i)ni]p V o = C \times \left[ \frac { 1 - \frac { 1 } { ( 1 + i ) ^ { n } } } { i } \right]pVo=C×[i1−(1+i)n1​​]

Question 2

Question 2

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The formula to calculate the present value of an ordinary annuity is: pVo=C×[1−1(1+i)ni]p V o = C \times \left[ \frac { 1 - \frac { 1 } { ( 1 + i ) ^ { n } } } { i } \right]pVo=C×[i1−(1+i)n1​​]

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