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Present Value

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 March 2011 Why does future amount has a lower value today i.e. Rs. 100 received a year, say in 2012, from now has a lower value today that is in 2011. And by how much?
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Kumar

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Kumar (Expert)
22 March 2011
Because if you have Rs.90 today, you can invest it somewhere and earn Rs.10 by 2012.
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