Solution-Find the present value of $500 due in the future

Find the present value of $500 due in the future

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Reference no: EM131106203

Find the present value of $500 due in the future under each of these conditions:
a. 12% nominal rate, semiannual compounding, discounted back 5 years
b. 12% nominal rate, quarterly compounding, discounted back 5 years
c. 12% nominal rate, monthly compounding, discounted back 1 year
d. Why do the differences in the PVs occur?

Reference no: EM131106203

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Find the present value of $500 due in the future

Reference no: EM131106203

Reference no: EM131106203

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