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Payments are known as lump sums. We can solve for the future value or the present value of a lump sum as we discuss below. Finding the future value (FV), is the value of the lump sum today.

User Mrdziuban
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Final answer:

To calculate the present value or future value, you can use formulas like the present value formula: PV = FV/(1+r)^n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of time periods.

Step-by-step explanation:

The subject of this question is Mathematics because it involves calculations regarding present value and future value of a lump sum. The question mentions finding the present value and future value given a certain interest rate.

In financial mathematics, the present value represents the current worth of a future sum of money, while the future value represents the amount that an investment will grow to over a period of time given a certain interest rate.

To calculate the present value or future value, you can use formulas like the present value formula: PV = FV/(1+r)^n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of time periods.

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