Question: Consider a future value of $2,000,7 years in the future. Assume that the nominal interest rate is 6.00%. If you are calculating the present value

Consider a future value of $2,000,7 years in the future. Assume that the nominal interest rate is 6.00%. If you are calculating the present value of this cash flow under semiannual (twice per year) compounding, you would entar for N and L/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 =$2,000, into a financial calculator vields a present value of approximately $ 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 I/Y into your financial calcutator. Entering in the values you fust calculated for N and L/Y, along with a PMT =0 and a FV=$2,000, into a financial calculator yields a present value of approximately $ with quarterly compounding. Suppose now that the cash flow of $2,000 only 1 year in the future. If you are calculating the present value of this cash fiow under quarterly (12 times per year) compounding, you would entes for 1/Y into your financial calculator. Entering in the values you just calculated for N and I/Y, along with aPMT=0 and a FV=$2,000, into a financial calculator yields a present value of aoproximately 5 with monthly compounding

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