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With that, you could compute exactly how much you would have to devote now (present worth) to ensure that your account to be well worth a specified sum at some time Sooner or later (long term price) which has a supplied curiosity fee. The 2nd equation can easily be solved for m, soon after which you'll be able to calculate, by way of example, the scale of a regular monthly payment you would wish for making to be able to have a specific amount of money sooner or later Later on. When solved for m, the next equation is called the sinking fund method.
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