Math Problem Statement
Suppose you receive $100 at the end of each year for the next three years. If the interest rate is 7%, what is the present value of these cash flows?
Solution
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Math Problem Analysis
Mathematical Concepts
Present Value
Discounting Future Cash Flows
Time Value of Money
Formulas
PV = C / (1 + r)^n
Theorems
Time Value of Money Principle
Suitable Grade Level
Grades 10-12
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