Lump sum value after 5 years = $500
So, PV = FV/(1+r/n)^(n*t)
a). APR = 6% compounded annually, so n = 1
PV = 500/1.06^5 = $373.63
b). APR = 6% compounded semiannually, so n = 2
PV = 500/(1 + 0.06/2)^(2*5) = $372.05
c). APR = 6% compounded monthly, so n = 12
PV = 500/(1 + 0.06/12)^(12*5) = $370.69
6. Find the present value of a lump sum of $500 in five years if the...
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