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CHAPTER 4
Applied Finance and Economics
Part II Foundations and Applications of the Time Value of Money: Don't Discount Discounting

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Learning Objectives

■ Describe discounting and express through a formula solving for present value (PV).

■ Solve for present value using various inputs for future value, time, and discount rate.

■ Solve for present value using different compounding periods.

The Investment Advisor Body of Knowledge + Test Bank

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