Part One$-$Present Value of Single Amount

compounding is adjusted to quarterly. Consider each change separately.

$-$Note: Round your answers to the nearest whole dollar.

$*$Note: Do not use a negative sign $(-)$ with your answers.Part One$$Present Value of Single Amount

Laurel Inc. is considering an investment that will grow to $$6,400$ with an expected annual return of $6\%,$ compounded semiannually over $5$ years. Compute the amount that must be invested today $($present value$)$ under those assumptions. Next, compute the estimated present value assuming that the following variables change while other variables remain the same: $(1)$ interest rate increases to $8\%,(2)$ the number of years increases to $10,(3)$ the future value increases to $$8,000,$ and $(4)$ compounding is adjusted to quarterly. Consider each change separately.

$$Note: Round your answers to the nearest whole dollar.

$$Note: Do not use a negative sign $(-)$ with your answers.

Original Increase Increase Increase Increase

Terms Investment Interest Rate Periods Present Value Compounding

Annual interest rate $6\%8\%6\%6\%6\%$

Compounding Semiannual Semiannual Semiannual Semiannual Quarterly

Number of years $551055$

Future value $$6,400$ $$6,400$ $$6,400$ $$8,000$ $$6,400$

Present value $$($a$)$ $$($b$)$ $$($c$)$ $$($d$)$ $$($e$)$

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