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Consider a future value of 5500,9 years in the future. Assume that the nominal interest rate is 10.00%. Assume that there is semiannusl compounding. Entering

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Consider a future value of 5500,9 years in the future. Assume that the nominal interest rate is 10.00%. Assume that there is semiannusl compounding. Entering PMT =0 and o FV=5500 into a financial calculator, along with the appropriate periodic interest rate and value of N, yialds a present value of opproximately 5 with semiannual compounding. Assume that there is quarterfy compounding. Entering PMT=0 and a FV=5500 into a financial calculator, along with the appropriate periodic interest rate and value of N, yields a present value of approximateiy 5 with quarterly compounding. Suppose now that the cash flow of $500 occurs only 1 year in the future. Assume that there is monthly compounding. Entering PMT =0 and a FVas 500 into a financial calculator; along with the appropriate periodic interest rate and value of N, yialds a present value of approximately 5 with monthly compounding. Now ie's time to practice what you've learned. Consider a future value of $500,9 years in the future. Assume that the nominal interest rate is 18.00%. Assume that there is semiannual compounding. Entering PMT =0 and a FV=5500 into a financial calculator, along with the oppropriate periodic interest rate and value of N, yields a present value of approximately 5 with semiannual compounding. Assume that there is quarterly compounding. Entering PMTw 0 and a FVws $500 into a financial calculator, along with the appropriate periodic interest rate and value of N, yields a present value of approximately $ with quarterly compounding. Suppose now that/ of $500 occurs only 1 year in the future. Assume that there mpounding. Entering PMT =0 ar into a financial calculator, along with the appropriate periodic interest rate and value of N, yields a present value of approximately 1 . Consider a future value of $500,9 years in the future. Assume that the nominal interest rate is 18.00%. Assume that there is semiannual compounding. Entering PMT =0 and a P=$500 into a financial calculator, along with the appropriate periodic interest rate and value of N, ylaids a present value of approximately 31 with semiannual compounding. Assume that there is quarterly compounding. Entering PMT =0 and a FV=5500 into a financial calculator, along with the appropriate periodic interest rate and value of N, yleids a present value of approximately $ with quarterly compounding. of approximately 7 with monthly compounding

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