Chapter Review 05- Time Value of Money d Due on Tomorrow at 11.59 PM PST 2. Future value AaAa The prindipal 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 knowledge of the values of three of four time-value-of-money variables. Which of the following is not one of these variables? This process requires O The present value (PV) of the amount invested O The duration of the investment (N) O The inflation rate indicating the change in average prices O The interest rate (1) that could be earned by invested funds 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 19%. Identify the interest rate that corresponds with each line. VALUE IDollars TIME IYears Line A: Line B: Line C stments and loans base their interest calculations on one of two poss ble methods: the Interest and Type here to search