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Find the following values. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. a. An initial $300 compounded for
Find the following values. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent.
a. An initial $300 compounded for 10 years at 10%.
$
b. An initial $300 compounded for 10 years at 20%.
$
c. The present value of $300 due in 10 years at 10%.
$
d. The present value of $2,500 due in 10 years at 20% and 10%.
Present value at 20%: $
Present value at 10%: $
e. Define present value.
- 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.
- 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.
- 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.
- 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.
- 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.
Answer:
How are present values affected by interest rates?
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