Rework number 3-use semi-annual compounding. Show work

3. calculating present values Present value is exactly the inverse of rture value. In this exercise. instead of increasing a current sum by the amount of interest earned {compounding}; we are \"undoing\" the effect of compound interest {discounting}. That is1 given a certain interest rate {HY} and a certain investment period {N}; how much must be invested today {PF} in order to accumulate a certain amount in the future {FY}? In other words. how much interest are we foregoing by waiting until some point in the future to receive funds? Given below are the solutions algebraically and using the calculator. W = {1041511121.02115 = 2036.60 Fv =151415;121:r = 2; N = 15; our W = 0036.66 W = {4T332}[11'1.11]3 = 20560.31 Fv= 42362; 1212 = 11; N = 6; CPT W = 2D56.31 Pv={312126}{121.10113 = 60426.22 Fv = 312126;12v = 10; N = 13; err W = 60426.22 W = {626361612133125 = 20645.02 Fv= 626361;12v = 13; N = 25; err W = 251645.02 Now; let's rework these examples using quarterly compounding. That is; let's assume that; at the end of every three month period {i.e.. quarter of a year}; interest begins to earn interest. Note that the rates are divided by four and the periods are quadrupled. quarterly compounding W = 11151141511121.0125?ml = 6656.02 Fv =151415;121:r = 1.25; N = 60; our W = 6656.02 W = {42362111210225}32 =16666_12 Fv = 42362; 1212 = 2.25; N = 32; car W = 451666.12 W = {31212611121025}52 = 66446.21 Fv = 312126; 1212 = 2.5; N = 52; our W = 6644631 Pv = {620361}{121.0325}1\"\" = 25606.40 Fv = 626361; 1212 = 3.25; N = 100; C'PT W = 256516.46