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P5-36 only please Suppose that somehow you know that the present value of the entire stream is $32, 911.03 and that the discount rate is

P5-36 only please image text in transcribed
Suppose that somehow you know that the present value of the entire stream is $32, 911.03 and that the discount rate is 4%. What is the amount of the missing cash flow in year 3? Changing compounding frequency Using annual, semiannual, and quarterly compounding periods for each of the following, (1) calculate the future value if $5,000 is deposited initially, and (2) determine the effective annual rate (EAR). a. At 12% annual interest for 5 years. b. At 16% annual interest for 6 years. c. At 20% annual interest for 10 years. Compounding frequency, time value, and effective annual rates For each of the cases in the following table: a. Calculate the future value at the end of the specified deposit period. b. Determine the effective annual rate, EAR. c. Compare the nominal annual rate, r, to the effective annual rate, EAR. What relationship exists between compounding frequency and the nominal and effective annual rates

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