Question: Using the present value and future value tables, a financial calculator, or a spreadsheet, answer the following questions. a. $ 200,000 is to be received
a. $ 200,000 is to be received five years from today. What is the PV of this cash flow if 6% interest is com-pounded annually?
b. $ 200,000 is to be received five years from today. What is the PV of this cash flow if 6% interest is com-pounded semiannually?
c. $ 100,000 is left on deposit for three years. What is the FV of this investment if 6% interest is compounded semiannually?
d. $ 100,000 is left on deposit for three years. What is the FV of this investment if 6% interest is compounded quarterly?
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a Using PV of 1 Table 7 A2 where N 5 and IY 6 PV of 1 200000 x FACTOR 7A2 PV of 1 200000 x 74726 PV ... View full answer
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