Present values and interest rates and between present values

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Reference no: EM13976618

Assume you received $8,000 five years from today. Calculate the present value of the $8,000 if your investments pay

a. 6 percent compounded annually

b. 8 percent compounded annually

c. 10 percent compounded annually

d. 10 percent compounded semiannually

e. 10 percent compounded quarterly

Discuss your answer. Specifically, what do your answers to these questions tell you about the relation between present values and interest rates and between present values and the number of compounding periods per year?

Reference no: EM13976618

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