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23 March, 10:28

the most you would pay for an investment that pays you x amount in one year and x aount in five years

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  1. 23 March, 12:17
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    the most you can pay for an investment that pays you an X amount during one year = X$ / (1 + discount rate) the most you can pay for an investment that pays you X amount during five years = [X$ / (1 + discount rate) ] + [X$ / (1 + discount rate) ²] + [X$ / (1 + discount rate) ³] + [X$ / (1 + discount rate) ⁴] + [X$ / (1 + discount rate) ⁵]
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