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

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

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

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

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

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Financial management theory and practice

ISBN: 978-0324422696

12th Edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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Question Posted: Mar 16, 2010 03:29 AM

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

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a b C 0 PV a 0 PV 0 3 2 Enter the time line values into a financial calculator to obtain PV 27920 o...View the full answer

Financial management theory and practice

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