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The graph shows the discounted value of $1 over time. Move the slider to change the compound interest rate and observe how the curve for
The graph shows the discounted value of $1 over time. Move the slider to change the compound interest rate and observe how the curve for the present value of $1 changes. The red dotted cursor lines show the present value of $1 at a specific time period in the future. Drag on the graph to select different time periods. Present Value of $1 1.0 0.86 0.8 0.6- 04- 0.2- 0.0- PVN = FV = = (1+ 0 4 6 1 (1+1)N 8 (1+0.050) 3.0 = 1.16 = $0.86 10 2 12 14 16 18 20 Periods
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