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Assume you have $100 today (time 0). Calculate future values of this $100 today at a 10% rate of return over the following three time
- Assume you have $100 today (time 0). Calculate future values of this $100 today at a 10% rate of return over the following three time periods: 1 year, 5 years, 30 years. Then keep the time-period at 5 years and vary the rate from 5% to 10% to 20%. (Show a screen shot for each of the first three and each of the second three problems). Once you have cut and pasted the six problems, go to the top of your answer, and describe the relationships between time and rate with respect to future value. For example, as seen below, more time results in [higher/lower] future value; higher rates of return result in [higher/lower] future values.
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