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Define present value and illustrate it

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Question - PRESENT AND FUTURE VALUES FOR DIFFERENT INTEREST RATES: Find the following values. Compounding/discounting occurs annually.

a. An initial $200 compounded at 10 years at 4%

b. An initial $200 compounded for 10 years at 8%

c. The present value of $200 due in 10 years at 4%

d. The present value of $1,870 due in 10 years at 8% and at 4%

e. Define present value and illustrate it using a timeline with data from part d. How are present values affected by interest rates?

Reference no: EM133059745

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