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Stan Sweeney turned 20 years old today His grandfather established a trust for him that will pay 80,000 on his next birthday. But he need money today. His father is willing to help by giving him the present value of the future cash inflow, assuming a 10 percent rate of return? How can I use a present vlue table to determine the amount of cash that Stan's father should give him. What algebraic formula could I use to prove that the present value of the trust amount is equal to its 80,000 future value?
Show me the assumption and give the simple entry for explanation
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