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All other things being equal, the numerical difference between a present and a future value corresponds to the amount of interest earned during the
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%, 10%, or 20%. Identify the interest rate that corresponds with each line. VALUE (Dollars C 0 1 2 3 4 5 6 7 8 9 10 TIME (Years) A-Z 0 1 2 3 5 7 9 10 TIME (Years) Line A: Line B: Line C: Investments and loans base their interest calculations on one of two possible methods: the interest and the interest methods. Both methods apply three variables-the amount of principal, the interest rate, and the investment or deposit period-to the amount deposited or invested in order to compute the amount of interest. However, the two methods differ in their relationship between the variables. A- 0
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