Question: How are the present values affected by changes in interest rates? Show how the Rule of 72 can be used to approximate the number of

  1. How are the present values affected by changes in interest rates?
  2. Show how the Rule of 72 can be used to approximate the number of years to quadruple an investment.
  3. List and describe the purpose of each part of a timeline with an initial cash inflow and a future cash outflow. Which cash flows should be negative and which positive? Why?
  4. At age 30 you invest $1,000 that earns 8 percent each year. At age 40 you invest $1,000 earns 12 percent per year. In which case would you have more money at age 60?

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