4-5 What is the present value of $1,500 due in 14 years at a (a) 5 percent interest rate and (b) 10 percent rate. Explain why the present val- ue is lower when the interest rate is higher. 4-7 What is the present value (PV) of an investment that will pay $2,500 in five years if the opportu nity cost rate is 9 percent compounded (a) annu- ally, (b) quarterly, and (c) monthly? Explain why the PV is lowest when interest is compounded monthly