Find the present value for various discounting periods

Assignment Help Financial Management

Reference no: EM131993984

Present value for various discounting periods

Find the present value of $300 due in the future under each of these conditions:

A. 13% nominal rate, semiannual compounding, discounted back 5 years. Round your answer to the nearest cent.

$ ________

B. 13% nominal rate, quarterly compounding, discounted back 5 years. Round your answer to the nearest cent.

$ ________

C. 13% nominal rate, monthly compounding, discounted back 1 year. Round your answer to the nearest cent.

$ ________

D. Why do the differences in the PVs occur? (select)

i. The present values decline as the discounting periods per year increase

ii. The present values decline as the discounting periods per year decrease

iii. The present values increase as the discounting periods per year increase

iv. The present values are not affected by changes in the number of discounting periods per year

v. The present values are positively related to the number of discounting periods per year

Reference no: EM131993984

Questions Cloud

Renewable energy electricity supply technology : A renewable energy electricity supply technology has the following characteristics: Capital cost ($) Annual operating cost ($) Lifetime (years) Salvage value

What amount of money must be in the retirement fund : What amount of money must be in the retirement fund on John's 65th bday if he will withdraw $6,000 then and every subsequent month?

Reaching financial goal : Six years from today you need $10,000. You plan to deposit $1,400 annually, with the first payment to be made a year from today,

Considered variable cost : Which of the following would be considered a variable cost? In which company lifecycle stage is company most likely to invest in equipment that adds efficiency?

Find the present value for various discounting periods : Find the present value of $300 due in the future under each of these conditions:

Effective rate of interest : Find the interest rates earned on each of the following. You borrow $660 and promise to pay back $693 at the end of 1 year.

What is the ending year value of one PP share : Permian Partners (PP) produces from aging oil fields in west Texas. What is the ending 2016 value of one PP share?

Future value for compounding periods : Find the amount to which $700 will grow under each of these conditions: 16% compounded annually for 5 years.

Future value of ordinary annuities : Find the future values of these ordinary annuities.

User Account

All Pages