00:01
In this problem present value is given by present value is the function of t let us say.
00:07
So, this is is equals to future value upon 1 plus r whole to the power t right.
00:15
So, this is so simple as that.
00:17
So, let us suppose at let ok.
00:24
So, for 1 year time it is given.
00:26
So, pv at t is equals to 1 would be equals to future value was 50 divided by 1 plus 3 percent was there right 3 percent rate was there.
00:40
So, this becomes 0 .03 right to the power t which is 1 itself right what will be the value it will be 50 by 1 .03.
00:50
We will calculate it later let us just make an equation for 1 year then 3 years then 5 years.
00:58
So, it will be future value was 60 dollars i am sorry this is this is euro euro is there right 60 euro was there.
01:12
So, it will be 1 plus 0 .085 because 8 .5 percent was the rate and to the power 3 right.
01:25
So, this becomes 60 upon 1 .0 1 .085 to the power 3 right.
01:43
So, we need to find this value now for 5 years time you can write what was the like future value it was euro 100 divided by 1 plus what was the rate percentage rate was 12 percent means 0 .12 percent for 5 years right...