Now it's time to practice what you've learned.

Consider a future value of $$500,9$ years in the future. Assume that the nominal interest rate is $18\mathrm{.}00\%.$

Assume that there is semiannual compounding.

Entering PMT $=0$ and a FV $=$$$500$ into a financial calculator, along with the appropriate periodic interest rate and value of $N,$ yields a present value of approximately $ with semiannual compounding.

Assume that there is quarterly compounding.

Entering PMT $=0$ and a FV$=$ $$500$ into a financial calculator, along with the appropriate periodic interest rate and value of $N,$ yields a present value of approximately $ with quarterly compounding.

Suppose now that the cash flow of $$500$ occurs only $1$ year in the future.

Assume that there is monthly compounding.

Entering PMT $=0$ and a FV $=$$$500$ into a financial calculator, along with the appropriate periodic interest rate and value of $N,$ yields a present value of approximately $ with monthly compounding.

TOTAL SCORE: $\frac{6}{11}$

$($to complete this step and unlock the next step$)$

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