Question: Conceptual Overview: Explore the amount $1 is discounted for different compound interest rates across time. a specific time period in the future. Drag on the

Conceptual Overview: Explore the amount $1 is discounted for different compound interest rates across time. a specific time period in the future. Drag

Conceptual Overview: Explore the amount $1 is discounted for different compound interest rates across time. a specific time period in the future. Drag on the graph to select different time periods. PVN=FVN1=(1+I)N1=(1+0.050)3.01=1.161=$0.86 1. What is the present value of $1 due in 3 years when the discount interest rate is 10% ? a. $1.33 b. $1.00 c. $0.75 d. $0.10 2. How much is each $1 due in 14 years at a discount rate of 5% worth today? a. $0.86 b. $0.51 C. $1.98 d. $1.00 a. Long greater than Short b. Short greater than Long c. Long and Short have same present value d. Not enough information to determine

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