Investments and loans base their interest calculations on one of two possible metheds: the interest and the interest methods. Beth metheds apply three varables - the amourt of principal, the interest rate, and the investment or depasit period-to the amount deposted of hvested in order to compute the amount of interest. Hewever, the two methods difter in their relotionship between ine variables. Assume that the variables 1,N, and NV represient the interest rate, imestment or depssit period, and present value of the amount deposted or invested. respectively. Which equation best represents the calculabon of a future value (FV) using Cempound interest? N=PV+(PV1n)RV=(1+1)N/PVFV=PV(1+D)2 Simple interest? F=W+(PV1N)F=W1NFV=FV(PV1N) Identfy whether the folowing statements about the simple and compound interest methods are true se false. FV=PV(1+1)V Simple interest? F=FV+(FV1N)FV=F1NF=FV=(W1N) Identify whether the following statements about the simple and compound interest methods are true or false. Nicholai is willing to invest $35,000 for sir vears, and is an economicaly ratienal imvestor, He has identified three inveatment aiternatives (A, D, and Q ) that vary in their method of calculating interest and in the annual interest rate offered. Since ne can only make one invustment during the six-year ilvestment penod, complete the following table and indicate whether Nicholar should invest in each of the investments. Note: When calculating each imvestment's future value, assume that all interest is eamed annualy, The final value shoild be rounded to the nearest whole doltar, The princiesl of the time value of money is probably the siogle most important concept in fenancial mansoement. One of the most frequentiy encounternd applications invelves the calculation of a future value. The process foc comverting presens values into future values is called This process requires knowledge of the values of three of four time-yahue-of-money variables. Which of the following is not one of these varubles? The inflation rate indicating the change in average prices The duration of the investinent (N) The present value (PV) of the amount invested The interest rate (1) that could be eamed by invested funds Ail other things being equal, the numerical daference betweth a present and a future value comesponds to the amount of interest earted furing the depost or investment period. Each line on the folowing graph corresponds to an intecest rate: ow, 11%, or 21%. Identify the interest rate that correspords with each line