What is the present value of $2,900 due in 18 years at a 6 percent interest rate and 11 percent interest rate? Do not round intermediate calculations. Round your answers to the nearest cent.

Present value at 6%: $ = ?

Present value at 11%: $ = ?

Explain why the present value is lower when the interest rate is higher. ?

1. The less interest you can earn during an investment period, the less you need to invest today to receive a particular amount in the future.
2. The more interest you can earn during an investment period, the less you need to invest today to receive a particular amount in the future.
3. The more interest you can earn during an investment period, the more you need to invest today to receive a particular amount in the future.