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What would the FV and the PV for parts a and b be if the interest rate were 10% with semiannual compounding rather than 10%
| What would the FV and the PV for parts a and b be if the interest rate were 10% with semiannual compounding rather than 10% with annual compounding? | ||||||
| Part a. FV with semiannual compounding: | Orig. Inputs | New Inputs | ||||
| Inputs: | PV = | 1000 | 1000 | |||
| I/YR = | 10% | 5% | ||||
| N = | 5 | 10 | ||||
| Formula: | FV = PV(1+I)^N = | |||||
| Wizard (FV): | ||||||
| Part b. PV with semiannual compounding: | Orig. Inputs | New Inputs | ||||
| Inputs: | FV = | 1000 | 1000 | |||
| I/YR = | 10% | 5% | ||||
| N = | 5 | 10 | ||||
| Formula: | PV = FV/(1+I)^N = | |||||
| Wizard (PV): | ||||||
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Part a Given Present Value PV Present Value PV Interest Rte 1 10 2 5 Semi annual compoun...
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Principles of Corporate Finance
Authors: Richard A. Brealey, Stewart C. Myers
7th edition
72869461, 72467665, 9780072467666, 978-0072869460
