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Consider a future value of $2,000,8 years in the future. Assume that the nominal interest rate is 6.00%. If you are calculating the present value
Consider a future value of $2,000,8 years in the future. Assume that the nominal interest rate is 6.00%. If you are calculating the present value of this cash flow under semiannual (twice per year) compounding, you would enter for N and for IY into your financial calculator. Entering in the values you just calculated for N and IY, along with a PMT =0 and a FV=\$2,000, into a financial calculator yields a present value of approximately $ with semiannual compounding. If you are calculating the present value of this cash flow under quarterly (four times per year) compounding, you would enter for N and for IY into your financial calculator. Entering in the values you just calculated for N and IY, along with a PMT =0 and a FV=\$2,000, into a financial calculator yields a present value of approximately $ with quarterly compounding. Suppose now that the cash flow of $2,000 only 1 year in the future. If you are calculating the present value of this cash flow under quarterly (12 times per year) compounding, you would enter for IY into your financial calculator. for N and Entering in the values you just calculated for N and I/Y, along with a PMT =0 and a FV =$2,000, into a financial calculator yields a present value of approximately $ Consider a future value of $2,000,8 years in the future. Assume that the nominal interest rate is 6.00%. If you are calculating the present value of this cash flow under semiannual (twice per year) compounding, you would enter for N and for IY into your financial calculator. Entering in the values you just calculated for N and IY, along with a PMT =0 and a FV=\$2,000, into a financial calculator yields a present value of approximately $ with semiannual compounding. If you are calculating the present value of this cash flow under quarterly (four times per year) compounding, you would enter for N and for IY into your financial calculator. Entering in the values you just calculated for N and IY, along with a PMT =0 and a FV=\$2,000, into a financial calculator yields a present value of approximately $ with quarterly compounding. Suppose now that the cash flow of $2,000 only 1 year in the future. If you are calculating the present value of this cash flow under quarterly (12 times per year) compounding, you would enter for IY into your financial calculator. for N and Entering in the values you just calculated for N and I/Y, along with a PMT =0 and a FV =$2,000, into a financial calculator yields a present value of approximately $
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