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What is present value of an investment that promises to pay

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Question 1: If you invest $500 today in an account that pays 6 percent interest compounded annually, how much will be in your account after two years?

Question 2: What is the present value of an investment that promises to pay you $1,000 in five years if you can earn 6 percent interest compounded annually?

Reference no: EM132658899

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