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The principat of the time value of money is probably the single most inportant concept in financial maragement. One of the most frequentf encountered applications

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The principat of the time value of money is probably the single most inportant concept in financial maragement. One of the most frequentf encountered applications involves the calculation of a future value. The nrocess for comverting present values into future values is calied This process requires kiowiledge of the wahes of trree of four time-value-of-money variables. Which of the fosbwing is not one of these variables? The inflation rate indicating the change in average prices The duration of the investment (N) The interest rate (D) that cocild be earned by invested funds The present value (PN) of the amount invested Al other things being equal, the numerical difference between a present and a future value corresponds to the ambunt of interest eamed turling tha deposit of investment period. Each line on the follewing graph corresponds to on interest rate: o\%, 11%, or 21%. Identify the interere rate that corresponds with each tine. Wi oftler thingt being tequl, the dumeical difterence beticeen a sresent aod a fucuet value cogrespondi to the amount of intersit tames thurikg the deposit or investment penod Fech Ine on the foloning graph cerikioonda th en aiterkit iatw ap, 1itw, or dis. Idemity the inuerrw ote that. carrestonds wits each line. Lina 1 e liestreentie tansbien. betweten tha viebies. Fompoumd intersi?? PV=(1+b2)retP=PYx(1+1)M)PV=PU+(Fx+N) Fartiple impterst? N=N+(F+x)=dt]R=AVI=Ai 5tatmment eeinand intietst by the ind of the firat vots. FV=FV1N Identify whether the fallowing statements abcut the simple and compound interest methods are tret or folse. invedment period, comblete the following table and indicaqe whether Nichola should iwed in caco of tre imseitments. Note: When calculatiog each investments future value, assume that all intereat is earned asovall. The final vase mouls be mansed to the anaitat whele datiar

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