Find the present value of $500 due in the future under each of these conditions: a. 12%

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Find the present value of $500 due in the future under each of these conditions:

a. 12% nominal rate, semiannual compounding, discounted back 5 years

b. 12% nominal rate, quarterly compounding, discounted back 5 years

c. 12% nominal rate, monthly compounding, discounted back 1 year

d. Why do the differences in the PVs occur?

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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

Question Posted: Oct 05, 2011 09:50 AM

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Find the present value of $500 due in the future under each of these conditions: a. 12%

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a With a financial calculator enter N 10 IYR 6 PMT 0 and FV 500 and ...View the full answer

Fundamentals of Financial Management

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