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Assignment - Application of Future Value and Present Value
1. Calculate the present value in ten years of $2,000 received today if your investments pay:
a. 6 percent compounded annually
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b. 8 percent compounded annually
c. 10 percent compounded annually
d. 10 percent compounded semiannually
e. 10 percent compounded quarterly
2. What is the relationship between present values and interest rates and present values and the number of compounding periods per year?
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