Asked by
Vigie Abinsay
on Nov 26, 2024
Verified
For a given future value, the higher the interest rate is, the higher the present value will be.
Future Value
The worth of an asset or cash on a future date that has the same value as a certain amount presently.
Present Value
A calculation that determines the current worth of a future sum of money or stream of cash flows, given a specified rate of return.
- Identify how interest rates are used to calculate present and future values of investments.
Verified Answer
MK
Learning Objectives
- Identify how interest rates are used to calculate present and future values of investments.