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Plot the relationship between the present value of a $100 payment 10 years in the future, as a function of discount rate. Draw the graph
Plot the relationship between the present value of a $100 payment 10 years in the future, as a function of discount rate. Draw the graph by hand, use CamScanner (or equivalent) to capture your drawing and upload it here. Step-by-step process for producing hand-drawn graphs i... 1. Start with the axes, drawing the independent (x-axis) first, and the dependent (y-axis) second, to remind yourself that the x-axis is the input to your model and the y-axis is the output. 2. Label these axes, including the units of each axis. 3. Identify the equation that governs the relationship between the independent (x-axis) and dependently- axis) variables. 4. Write the equation on your plot. 5. Calculate the x and y intercepts (If they exist. They might be undefined --i.e., infinity) and label them with numbers. 6. Calculate two or three example points between these intercepts. 7. Free hand a line that joins them -- like connect the dots
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