Find the present value of $700 due in the future under each of the following conditions. Do not round intermediate calculations. Round your answers to the nearest cent.
9% nominal rate, semiannual compounding, discounted back 5 years.
$
9% nominal rate, quarterly compounding, discounted back 5 years.
$
9% nominal rate, monthly compounding, discounted back 1 year.
$
FV =700
a. Semi annual Rate =9%/2 =4.5%
Number of Periods =5*2 =10
PV =FV/(1+r)^n =700/(1+4.5%)^10 =450.75
b. Quarterly Rate =9%/4 =2.25%
Number of Periods =5*4 =20
PV =FV/(1+r)^n =700/(1+2.25%)^20 =448.57
c. Monthy Rate =9%/12 =0.75%
Number of Periods =1*12 =12
PV =FV/(1+r)^n =700/(1+0.75%)^12 =639.97
Find the present value of $700 due in the future under each of the following conditions....
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