Task: (Present and future values) Assume that you are starting with an investment of $10,000.
Q1. What is the future value of the investment after one year if it earns 10% per year? What is the present value of this future value discounted at 10%?
Q2. What is the future value of the investment after one year if it earns 20% per year? What is the present value of this future value discounted at 10%?
Q3. What is the future value of the investment after one year if it earns 10% per year? What is the present value of this future value discounted at 20%?