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

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Aa Aa 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 values of three of four time-value-of-money variables. Which of the following is not one of these variables? O The interest rate (r) that could be earned by deposited funds O The present value (PV) of the amount deposited O The duration of the deposit (n) The trend between the present and future values of an investment All other things being equal, the numerical difference between a present and a future value corresponds to the amount of interest earned during the deposit or investment period. Each line on the following graph corresponds to an interest rate: 0%, 8%, or 16%. Identify the interest rate that corresponds with each line. VALUE (Dollars 0 1 2 3 4 5 6 7 8 9 10 TIME (Years) Line A: Line B: Line C

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