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Perpetuties

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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January 11, 2016 at 9:16 am #294088
ggg1
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Hi John !
Why Examples 7 and Test 5 in Chapter 20 doesnt same calculation method .In Example 7 , answer didn’t added current present value amount . But in Test 5 , Present value 6000 plus . What the different ?
January 11, 2016 at 9:39 am #294100
John Moffat
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- Topics: 57
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In example 7 the first receipt is in 1 years time.
In test question 5, the first receipt is immediate (i.e. now). The PV of an amount receivable immediately is the same as the amount itself.
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