Question: Short Notes: There are three numerical questions, you can answer them using either mathematical formula (if possible) or financial calculator. No matter what method you

Short Notes: There are three numerical questions, you can answer them using either mathematical formula (if possible) or financial calculator. No matter what method you use, you need to show the calculation steps (for math formula) or function buttons that you click (for calculator, like what was shown in the PPT slide 6 or slide 8 of chapter 5). Showing no steps will be discounted significantly.

Question 2 (10 points) Suppose Kim has $800 due in the future and the nominal rate is 6%, please find out its present value under following two conditions: (1) Semiannual compounding, discounted back 8 years (2) Quarterly compounding, discounted back 8 years. Why do the differences in the PVs occur?

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