1. 4
The Time Value of Money

2. Figure 4.1 Simple versus Compound Interest
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3. Figure 4.2
Growth of a $100 Investment at Various Compound Interest Rates
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4. Figure 4.3 Present Value of $100 at Various Discount Rates
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5. Figure 4.6
Timeline of the Future Value of an Ordinary Annuity (PMT = $1,000; i = 6%; n = 3)
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6. Figure 4.7
Timeline of the Future Value of an Annuity Due (PMT = $1,000; i = 6%; n = 3)
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7. Figure 4.8
Timeline of a Present Value of an Ordinary Annuity (PMT = $1,000; i = 6%; n = 5)
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8. Figure 4.9
Timeline of a Present Value of an Annuity Due (PMT = $1,000; i = 6%; n = 5)
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9. Figure 4.10
Timeline of a Present Value of Unequal Payments (i = 10%; n = 5)
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10. Figure 4.11 Timeline of a Deferred Four-Year Annuity (i = 12%)
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