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The present value and future value of a loan

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The present value and future value of a loan

The present value and future value of a loan

▸ have no relationship.

▸ are connected through compounding.

▸ represent the difference between income flows over time.

▸ are connected through the interest rate.

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Managerial Economics and Strategy

Edition: 3^rd

Authors: Perloff, Brander

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