[naumaniqrar]

With the help of discount rate we present value of money.
for example if we have 10% discount rate and we want to calculate present of 1000$ in two year.
solution:- 1000*(1+0.10)^(-3) =751.315
10% =0.10
present value of 1000 in 4years?
solution:- 1000*(1+0.10)^(-4) =683.01

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