Question: Construct a table and a graph showing the relationship between interest rates, time, and present value by showing how $10,000 pushed a year further into
Construct a table and a graph showing the relationship between interest rates, time, and present value by showing how $10,000 pushed a year further into the future over a 20 year period would be discounted at different interest rates. Use $10,000 for your future value and calculate the present value of this $10,000 each year over the 20 year period at 0%, 2%, 5%, 8%, 11%, 14%, 17%, and 20% compounded annually. Present Value should be the y-axis for your graph and years (or time) should be your x-axis and you should end up with a line for each interest rate on your graph. Please insert your graph (chart) under your table of present values.
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