# What is the present value of $1,500 due in 14 years at a (a) 5 percent interest rate (b) 10 percent rate. Explain why the present value is lower when the interest rate is higher.

What is the present value of $1,500 due in 14 years at a

(a) 5 percent interest rate

(b) 10 percent rate.

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

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## a PV 1 500 1 05 14 1 500 0 505068 757 60 Using a financial calculator enter N 14 I Y …View the full answer

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