What is the relationship between an interest rate and a discount rate in time value of money calculations?
a) There is no relationship between an interest rate and a discount rate.
b) A discount rate represents how much an amount of money decreases, as in a future value calculation; an interest rate represents how much an amount of money increases, as in a present value calculation.
c) An interest rate represents how much an amount of money increases, as in a present value calculation; a discount rate represents how much an amount of money decreases, as in a future value calculation.
d) An interest rate represents how much an amount of money increases, as in a future value calculation; a discount rate represents how much an amount of money decreases, as in a present value calculation.