Question
Find the present value of $400 due in the future under each of these conditions: 8% nominal rate, semiannual compounding, discounted back 7 years. Do
Find the present value of $400 due in the future under each of these conditions:
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8% nominal rate, semiannual compounding, discounted back 7 years. Do not round intermediate calculations. Round your answer to the nearest cent. $
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8% nominal rate, quarterly compounding, discounted back 7 years. Do not round intermediate calculations. Round your answer to the nearest cent. $
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8% nominal rate, monthly compounding, discounted back 1 year. Do not round intermediate calculations. Round your answer to the nearest cent. $
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Why do the differences in the PVs occur?
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
