Question: Please Find effective rate semiannually, future value and present value Find effective rate, future value and present value (8) What is the value at the
Please Find effective rate semiannually, future value and present value
Find effective rate, future value and present value
(8) What is the value at the end of Year 3 of the following cash flow stream if interest is 4% compounded semiannually? (Hint: You can use the EAR and treat the cash flows as an ordinary annuity or use the periodic rate and compound the cash flows individually.) 1 2 3 4 5 6 0 + + + | $100 $100 $100 Nominal rate 4% Effective rate (semiannually) Future value Present value 256.58 4.04
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