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Attempts: Average: 15 Aa Aa E, 4. Future value The principal of the time value of money is probably the single most important concept in
Attempts: Average: 15 Aa Aa E, 4. 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. The process for converting present values into future values is called This process requires knowledge of the values of three of four time-value-of-money variab discounting pllowing is not one of these compounding variables? O The present value (PV) of the amount invested The duration of the investment (N) O The interest rate (I) that could be earned by invested funds O The inflation rate indicating the change in average prices 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%, 9%, or 18%. Identify the interest rate that corresponds with each line. VALUE (Dollars) 1 2 3 4 5 6 7 8 9 10 TIME (Years) Line A: Line B: Line C
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