Question: QUESTION 11 10 points S Practice calculating the Future Value with non-annual compounding (Section 5-15 and Video) What is the future value of a single
QUESTION 11 10 points S Practice calculating the Future Value with non-annual compounding (Section 5-15 and Video) What is the future value of a single cash flow of 5792 deposited for 18 years that earns 5% annually? Assume quarterly compounding Round your answer to the nearest two decimals QUESTION 12 10 points Sav Variable Relationships and Present Value Consider an investment that promises a single cash flow of $1000 in 5 years. Assume semi-annual compounding (m=2) with an annual interest rate of 12% Calculate the present value Now increase the compounding periods per year using monthly compounding (m+12) Solve for the present value Which of the following are true? When the compounding periods per year increases, the present value decreases When the compounding periods per year increases, the present value increases When the compounding periods per year increases the present value is unchanged O When the compounding periods per year increases, the future value decreases
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