Question: 2. Exercise Two: Compute the Present Value of 1,000,000 USD (U.S. Dollars), received 150 years from today, if the interest rate is 2.25%, assuming: (a)
2. Exercise Two: Compute the Present Value of 1,000,000 USD (U.S. Dollars), received 150 years from today, if the interest rate is 2.25%, assuming: (a) simple interest, (b) daily compounding, (c) verify all your discrete compounding answers by using the PV function, (d) continuous compounding, (e) as shown in class today, use a Data Table to generate a graph showing the computation of Present Value over time increments of 10 years for all models in (a), (b), and (c). (Hint: You may generate at least ten points for your data using separate graphs. In addition, please notice that you need to prepare three separate graphs)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
