1 Calculate the PV of $10,000 to be received in ten years under various compounding frequencies:

1)Annual compounding at 10%

2)Monthly compounding at 10%

3)Continuous compounding at 10%

2 Calculate the FV of $1,000 invested today for ten years under various compounding frequencies:

1) Annual compounding at 10%

2)Monthly compounding at 10%

3)Continuous compounding at 10%

3. An interest rate is quoted as 6% per annum with semi-annual compounding.

(1) What is the equivalent annual compounding rate?

(2) What is the equivalent continuous compounding rate?