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(Present and future values) Assume that you are starting with an investment of $10,000.
a. What is the future value of the investment after one year if it earns 10% per year? What is the present value of this future value discounted at 10%?
b. What is the future value of the investment after one year if it earns 20% per year? What is the present value of this future value discounted at 10%?
c. What is the future value of the investment after one year if it earns 10% per year? What is the present value of this future value discounted at 20%?
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