Question: Present Value: 1 . Assume that you need Tk 2 0 0 0 after 2 years. Your bank compounds interest at an eight percent annual
Present Value: Assume that you need Tk after years. Your bank compounds interest at an eight percent annual rate. How much you need to deposit now to have a balance of Tk Your Father committed you to present a computer after years. Then the time the computer will cost Tk If bank interest rate is then bw much money your father needs to deposit now for fulfilling his commitment? You have a machine in your business. The expected life of this machine is years. After that it should be replaced by another one. To replace it you will need approximately Tk How much should be deposited now to accumulate the required funds if bank interest rate is per annum
compounded monthly.
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