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 presentvalue 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 presentvalue 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 presentvalue of approximately $with monthly compounding..

The present value is the value of an amount or cash flow at the immediate point of time. It 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 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.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 8MC: Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future...

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