Functions Modeling Change: A Preparation for Calculus, 5th Edition

Published by Wiley
ISBN 10: 1118583191
ISBN 13: 978-1-11858-319-7

Chapter 13 - Sequences and Series - Strengthen Your Understanding - Page 561: 26



Work Step by Step

The present value of a cash flow (in this case, a series of payments) is equal to the sum of all of the future payments (brought back to the present using interest rates). This is helpful in determining whether or not an action is economically beneficial.
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