Question
Construct a table and a graph showing the relationship between interest rates, time, and present value by showing how $1,000 pushed a year further into
Construct a table and a graph showing the relationship between interest rates, time, and present valueby showing how $1,000 pushed a year further into the future over a 30-year period would be discounted at different interest rates. Use $1,000 for your future value and calculate the present value of this $1,000 each year over the 30-year period at0%, 2%, 4%, 6%, 8%, 10%, 15%, and 20%compounded annually. Present Value should be the y-axis for your graph and years (or time) should be your x-axis and you should end up with a line for each interest rate on your graph. Please insert your graph (chart) under your table of present values.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started