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Given the cash flow below: Revenue, $ Year 3,500 1 3,500 2 3,500 3 3,500 4 0 Calculate the present value (P) and the future
Given the cash flow below: Revenue, $ Year 3,500 1 3,500 2 3,500 3 3,500 4 0 Calculate the present value (P) and the future value (F) for the following scenarios: a) The interest rate is 7% compounded daily b) The interest rate is 7% compounded monthly c) The interest rate is 7% compounded semi-annually d) Compare the results and explain the effect of compounding periods on the present and future values
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