Reference no: EM13852073
Present and future values for different interest rates
Find the following values. Compounding/discounting occurs annually. Round your answers to the nearest cent.
An initial $700 compounded for 10 years at 9%.
$
An initial $700 compounded for 10 years at 18%.
$
The present value of $700 due in 10 year at a discount rate of 9%.
$
The present value of $2,915 due in 10 years at 18%.
$
The present value of $2,915 due in 10 years at 9%.
$
Define present value.
The present value is the value today of a sum of money to be received in the future and in general is less than the future value.
The present value is the value today of a sum of money to be received in the future and in general is greater than the future value.
The present value is the value today of a sum of money to be received in the future and in general is equal to the future value.
The present value is the value in the future of a sum of money to be received today and in general is less than the future value.
The present value is the value in the future of a sum of money to be received today and in general is greater than the future value.
-Select-IIIIIIIVVItem 6
How are present values affected by interest rates?
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