Consider a future value of $500, 7 years in the future. Assume that the nominal interest...

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Consider a future value of $500, 7 years in the future. Assume that the nominal interest rate is 12.00%. If you are calculating the present value of this cash flow under semiannual (twice per year) compounding, you would enter 14▼ for N and 6 ▼ 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=$500, into a financial calculator yields a present value of approximately $ 332.5286 with semiannual compounding. If you are calculating the present value of this cash flow under quarterly (four times per year) compounding, you would enter 28 for N and 3 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=$500, into a financial calculator yields a present value of approximately $ with quarterly compounding. Suppose now that the cash flow of $500 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 I/Y into your financial calculator. for N and Entering in the values you just calculated for N and I/Y, along with a PMT=0 and a FV=$500, into a financial calculator yields a present value of approximately $ with monthly compounding. Consider a future value of $500, 7 years in the future. Assume that the nominal interest rate is 12.00%. If you are calculating the present value of this cash flow under semiannual (twice per year) compounding, you would enter 14▼ for N and 6 ▼ 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=$500, into a financial calculator yields a present value of approximately $ 332.5286 with semiannual compounding. If you are calculating the present value of this cash flow under quarterly (four times per year) compounding, you would enter 28 for N and 3 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=$500, into a financial calculator yields a present value of approximately $ with quarterly compounding. Suppose now that the cash flow of $500 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 I/Y into your financial calculator. for N and Entering in the values you just calculated for N and I/Y, along with a PMT=0 and a FV=$500, into a financial calculator yields a present value of approximately $ with monthly compounding.

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