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 24.00%. 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.
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 24.00%. 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.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text: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 24.00%.
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 int 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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