Consider a future value of $3,000, 8 years in the future. Assume that the nominal interest rate is 12.00%.

a. If you are calculating the present value of this cash flow under semiannual (twice per year) compounding, you would enter (solve)for N and (solve)for I/Y into your financial calculator.

b. Entering in the values you just calculated for N and I/Y, along with a PMT=0 and a FV=$3,000, into a financial calculator yields a present value of approximately $(solve)with semiannual compounding.

c. If you are calculating the present value of this cash flow under quarterly (four times per year) compounding, you would enter (solve)for N and (solve) for I/Y into your financial calculator.

d. Entering in the values you just calculated for N and I/Y, along with a PMT=0 and a FV=$3,000, into a financial calculator yields a present value of approximately $(solve) with quarterly compounding.

Suppose now that the cash flow of $3,000 only 1 year in the future.

e. If you are calculating the present value of this cash flow under quarterly (12 times per year) compounding, you would enter (solve) for N and (solve)for I/Y into your financial calculator.

f. Entering in the values you just calculated for N and I/Y, along with a PMT=0 and a FV=$3,000, into a financial calculator yields a present value of approximately $(solve)with monthly compounding.