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2. Future value The principal of the time value of money is probably the single most important concept in financial management. One of the most

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2. Future value The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value. . This process requires The process for converting present values into future values is called knowledge of the variables? values of three of four time-value-of-money variables. Which of the following is not one of these O The interest rate (1) that could be earned by invested funds O The inflation rate indicating the change in average prices O The present value (PV) of the amount invested O The duration of the investment (N) All other things being equal, the numerical difference between a present and a future value corresponds to the amount of interest earned during the dposit or investment period. Each line on the following graph corresponds to an interest rate: 0%, 10%, or 19%. Identify the interest rate that corresponds with each line. VALUE (Dollars 2. Future value The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value. . This process requires The process for converting present values into future values is called knowledge of the variables? values of three of four time-value-of-money variables. Which of the following is not one of these O The interest rate (1) that could be earned by invested funds O The inflation rate indicating the change in average prices O The present value (PV) of the amount invested O The duration of the investment (N) All other things being equal, the numerical difference between a present and a future value corresponds to the amount of interest earned during the dposit or investment period. Each line on the following graph corresponds to an interest rate: 0%, 10%, or 19%. Identify the interest rate that corresponds with each line. VALUE (Dollars

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