Assignment 05-Time Value of Money The process for converting present values into future values is called compounding-This process requires variables. Which of the following is not one of these knowledge of the values of three of four time-value-of-money variables The interest rate (1) that could be earned by deposited funds The trend between the present and future values of an investment O The present value (PV) of the amount deposited O The duration of the deposit (N) All other things being equal, the numerical ifference bet ween a present and a future value corresponds to the amount of interest earned during the deposit or investment period. Each line on the folowing graph corresponds to an interest rate: 0%, 9%, or 17%. Identify the interest rate that corresponds with each line. VALUE Dolars O 2 34s 79 TIME IYears Investments and loans base their interest calculations on one of two possible methods: the simple interest and the compound interest methods. Both methods apply three variables-the amount of principal, the interest rate, and the investment or deposit period-to the amount deposited or invested in order to compute the amount of interest. However, the two methods differ in their relationship between the variables. Asume that the variables 1, N, and PV represent the interest rate, investment or deposit period, and present value of the amount deposited or invested, respectively which equation best represents the calcu/ation of a future value (PV) using