Compute the present value of a $$100$ investment to be made $6$ months, $5$ years, and $10$ years from now at $4$ percent interest. Explain why the present value is lower the further into the future the investment is to be made.

$($Reminder: $n$ is term $-n$ is to the power $-$ if $n=1$ year then $3$ months is $.\frac{25}{6}$ months is $.\frac{5}{9}$ months is $\mathrm{.}75)$

Answer:

$6$ months: Present Value $=$

$5$ years: Present Value $=$

$10$ years: Present Value $=$