(Present and future values) Assume that you are starting with an investment of $10,000.
a. 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%?
b. 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%?
c. 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%?