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Sir in kit there is a question a sum of money was invested for 10 yrs at 7% per year and is now worth 2000 what was the original amount invested
1017 is correct answer sir how to solve this
Since the amount is now worth $2,000, the original amount invested must be the present value of 2,000 (i.e. the amount having removed 10 years interest at 7% per year).
To calculate the present value you divide $2,000 by the 10 year discount factor at 7% as I explain in my free lectures.
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