Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Find the present value of $ 8 0 0 due in the future under each of these conditions: a . 1 5 % nominal rate,

Find the present value of $800 due in the future under each of these conditions:
a.15% nominal rate, semiannual compounding, discounted back 6 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ b.15% nominal rate, quarterly compounding, discounted back 6 years. Do not round intermediate calculations. Round your answer to the nearest cent.
$ c.15% 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?
-Select-
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart

14th Edition

1264101597, 9781264101597

More Books

Students also viewed these Finance questions

Question

How is vacation and sick time accrued?

Answered: 1 week ago

Question

I didnt know who to talk to.

Answered: 1 week ago

Question

Th e complaint department was closed over the lunch hour.

Answered: 1 week ago

Question

Th ey probably would have treated me like a criminal.

Answered: 1 week ago