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eBook Problem Walk - Through Find the present value of $ 4 0 0 due in the future under each of these conditions: a .

eBook
Problem Walk-Through
Find the present value of $400 due in the future under each of these conditions:
a.12% nominal rate, semiannual compounding, discounted back 7 years. Do not round intermediate calculations. Round your answer to the nearest ce $
b.12% nominal rate, quarterly compounding, discounted back 7 years. Do not round intermediate calculations. Round your answer to the nearest cent. $
c.12% nominal rate, monthly compounding, discounted back 1 year. Do not round intermediate calculations. Round your answer to the nearest cent. $
d. Why do the differences in the PVs occur?
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