Question: How are present values affected by changes in interest rates? have any example? Present Value with Different Discount Rates Compute the present value of $5,000

  1. How are present values affected by changes in interest rates? have any example?
  2. Present Value with Different Discount Rates Compute the present value of $5,000 paid in two years using the following discount rates: 8 percent in the first year and 7 percent in the second year.

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