d. The present value of $2,580 due in 10 years at 6% and 3%.

Present value at 6%: $ _______

Present value at 3%: $ _________

e. Define present value.

1. The present value is the value today of a sum of money to be received in the future and in general is less than the future value.
2. The present value is the value today of a sum of money to be received in the future and in general is greater than the future value.
3. The present value is the value today of a sum of money to be received in the future and in general is equal to the future value.
4. The present value is the value in the future of a sum of money to be received today and in general is less than the future value.
5. The present value is the value in the future of a sum of money to be received today and in general is greater than the future value.

-Select- ___________

How are present values affected by interest rates?

A.Assuming positive interest rates, the present value will increase as the interest rate increases.

B- Assuming positive interest rates, the present value will decrease as the interest rate increases.

C. Assuming positive interest rates, the present value will decrease as the interest rate decreases.

D-Assuming positive interest rates, the present value will not change as the interest rate increases.

E-Assuming positive interest rates, the present value will not change as the interest rate decreases.