Compounding Interest More Frequently Than Annually (cont.). - Q9: assuming If Fred Moreno places $100 in a savings account paying 8% interest compounded annually, how much will he have in the account at the end of one year? (1) semiannual compounding and (2) quarterly compounding. - Present Value of a Single Amount: . Q2: Pam Valenti wishes to find the present value of $1,700 that will be received 8 years from now. Pam's opportunity cost is 8%. Present Value of a Mixed Stream Q8:Frey Company, a shoe manufacturer, has been offered an opportunity to receive the following mixed stream of cash flows over the next 5 years. If the firm must earn at least 9% on its investments, what is the most it should pay for this opportunity? End of year Cash flow 1 2 3 4 5 $400 800 500 400 300