Consider a future value of $$1,000,7$ years in the future. Assume that the nominal interest rate is $9\mathrm{.}00\%.$

If you are calculating the present value of this cash flow under semiannual $($twice per year$)$ compounding, you would enter $14$ for N and $4\mathrm{.}5$ for I$/$Y into your financial calculator.

Entering in the values you just calculated for N and I$/$Y$,$ along with a PMT$=0$ and a FV$=$$$1,000,$ into a financial calculator yields a present value of approximately $$299\mathrm{.}2465$ with semiannual compounding.

If you are calculating the present value of this cash flow under quarterly $($four times per year$)$ compounding, you would enter for N and for I$/$Y into your financial calculator.

Entering in the values you just calculated for N and I$/$Y$,$ along with a PMT$=0$ and a FV$=$$$1,000,$ into a financial calculator yields a present value of approximately $ with quarterly compounding.

Suppose now that the cash flow of $$1,000$ only $1$ year in the future.

If you are calculating the present value of this cash flow under quarterly $(12$ times per year$)$ compounding, you would enter for N and for I$/$Y into your financial calculator.

Entering in the values you just calculated for N and I$/$Y$,$ along with a PMT$=0$ and a FV$=$$$1,000,$ into a financial calculator yields a present value of approximately $ with monthly compounding.