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Now it's time to practice what you've learned. Consider a future value of $2,000,9 years in the future. Assume that the nominal interest rate is
Now it's time to practice what you've learned. Consider a future value of $2,000,9 years in the future. Assume that the nominal interest rate is 12.00%. Assume that there is semiannual compounding. Entering PMT=0 and a FV=\$2,000 into a financial calculator, along with the appropriate periodic interest rate and value of N, yields a present value of approximately $ with semiannual compounding. Assume that there is quarterly compounding. Entering PMT=0 and a FV=\$2,000 into a financial calculator, along with the appropriate periodic interest rate and value of N, yields a present value of approximately $ with quarterly compounding. Suppose now that the cash flow of $2,000 occurs only 1 year in the future. Assume that there is monthly compounding. Entering PMT=0 and a FV=\$2,000 into a financial calculator, along with the appropriate periodic interest rate and value of N, yields a present value of approximately $ with monthly compounding
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