If the interest rate is 4 percent instead of 6 percent, Financial Management

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If the interest rate is 4 percent instead of 6 percent

If we have an interest rate of 6 percent compounded annually.

a. What is the present value of $30000 received in 6 years?

b. What is the present value of $30000 received each year for 6 years?

c. If the interest rate is 4 percent instead of 6 percent, please explain in words why the present values would be higher.

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Financial Management: If the interest rate is 4 percent instead of 6 percent

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