Yes, the pattern that we're seeing here does generalize.

So if we look at 30 years or 25%.

So do the same kind of sensitivities we did before.

What we find is that if you look at the five percent,

as the number period gets bigger, the present value gets smaller.

We look at 25%, same thing as the number of years goes up,

the present value goes down.

And then for a given number of years, like if you look at all the 30 year rows.

As we go from five to 15 to 25 percent, the present value gets smaller.

So the present value is inversely related to the rate of return and

the number of periods, which means as r or n goes up.

Present value comes down.

Whereas r or n go down, present value goes up.

And notice that if you got 25% on your bond and you invested 30 years ago

you would have put in $12 to get $10,000 today.

>> This is all well and good.

But, I have a question, so what?

>> Okay, well let me give you a so what.

We'll look at an application where present value is useful in decision making.