Question
Find the present value of $400 due in the future under each of these conditions: 11% nominal rate, semiannual compounding, discounted back 10 years. Do
Find the present value of $400 due in the future under each of these conditions:
-
11% nominal rate, semiannual compounding, discounted back 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. $
-
11% nominal rate, quarterly compounding, discounted back 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. $
-
11% nominal rate, monthly compounding, discounted back 1 year. Do not round intermediate calculations. Round your answer to the nearest cent. $
What is the present value of a $300 perpetuity if the interest rate is 8%? If interest rates doubled to 16%, what would its present value be? Round your answers to the nearest cent.
Present value at 8%: $
Present value at 16%: $
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
