Question: 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

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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