# Discuss the effect of both the size of the rate of return and the time until receipt

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## Question:

Discuss the effect of both the size of the rate of return and the time until receipt on the present value of a future sum for an investment.For the rate of return, explain what will happend to the present value on the investment if the interest rates increases from $7\%$ to $14\%.$ For the time until receipt, describe what will happen to the present value if the time until receipt of the investment changes from $5$ years to $10$ years. You may include an investment dollar amount of your choice if you wish to include calculations along with the explanations.