Answer:
With a higher interest rate, you get more money per period, that acuminates.
The Present value is the starting amount... If the final amount is the same in both scenarios, and you get more interest in the second situation, you can start with a lower amount
Step-by-step explanation:
[tex]PV = CF / (1 + r) t[/tex]
pv1 = 25000/(1.062)^15 = $10,140.80
pv2 = 25000/(1.096)^15 = $6,320.94
