Question
Find the present value of $800 due in the future under each of these conditions: 15% nominal rate, semiannual compounding, discounted back 7 years. Do
Find the present value of $800 due in the future under each of these conditions:
15% nominal rate, semiannual compounding, discounted back 7 years. Do not round intermediate calculations. Round your answer to the nearest cent.
$
15% nominal rate, quarterly compounding, discounted back 7 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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