Question
Find the present value of $700 due in the future under each of these conditions: 15% nominal rate, semiannual compounding, discounted back 4 years. Do
Find the present value of $700 due in the future under each of these conditions:
-
15% nominal rate, semiannual compounding, discounted back 4 years. Do not round intermediate calculations. Round your answer to the nearest cent.
$
-
15% nominal rate, quarterly compounding, discounted back 4 years. Do not round intermediate calculations. Round your answer to the nearest cent.
$
-
15% nominal rate, monthly compounding, discounted back 1 year. Do not round intermediate calculations. Round your answer to the nearest cent.
$
-
Why do the differences in the PVs occur?
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Personal Finance
Authors: Jeff Madura
3rd Edition
0321357973, 978-0321357977
