Question: DON'T WRITE THE SOLUTION ON PAPER, PLEASE TYPE IT (BECAUSE SOME HANDWRITINGS I CANNOT READ PROPERLY!!) DON'T WRITE THE SOLUTION ON PAPER, PLEASE TYPE IT

DON'T WRITE THE SOLUTION ON PAPER, PLEASE TYPE IT (BECAUSE SOME HANDWRITINGS I CANNOT READ PROPERLY!!)

DON'T WRITE THE SOLUTION ON PAPER, PLEASE TYPE IT (BECAUSE SOME

DON'T WRITE THE SOLUTION ON PAPER, PLEASE TYPE IT (BECAUSE SOME HANDWRITINGS I CANNOT READ PROPERLY!!)

We are to receive $100 at the end of two years. How is the present value of the amount, assuming the interest rate is 8% per year compounded annually? The following timeline depicts the information we know, along with the unknown component (PV): PV=?? FV=$100 + 1 year + 1 year 0 1 2 n = 2; = 8% Calculate PV using the following formula PV = FV (1 + i)

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