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The question we want to look at now could be: How would we compute the current value of an annuity? Discover that the 2nd equation has no P in it, so we cannot basically fix for P as we did in the very first equation. In a way, we will take into account both of those equations with each other by considering the subsequent scenario.
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Which means we can easily set the best facet of the first equation equivalent to the proper facet of one other to acquire:
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Financing – discloses the planned borrowings and repayments of People prepared borrowings, together with interest.
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