present and future values for different interest rates
find the following values. compounding/discounting occurs annually.
1. an initial 500 compounded for 10 years at 6%
2. an initial 500 compounded for 10 years at 12%
3. the present value of 500 due in 10 years at 6%
4. the present value of 1,552.90 due in 10 years at 12% and at 6%
5. define present value and illustrate it using a time line with data from part 4. How are present values affected by interest rates?