QUESTION 11 What is the present value of $500 promised to be paid to you in 5 years if the current interest rate is 10%? QUESTION 12 You have hopefully calculated the present value of $500 promised to be paid to you in 5 years at three different interest rates: 2%, 4%, and 10%. What do you observe about present value when the interest rate increases? O Present value increases as the interest rate increases O Present value decreases as the interest rate increases QUESTION 13 Compound interest is when interest is paid on interest that is previously earned, or interest paid on interest. True False