effects of compounding frequency
Present value calculations—effects of compounding frequency, discount rates, and time periods Using a present value table, your calculator, or a computer program present value function, verify that the present value of $100,000 to be received in five years at an interest rate of 16%, compounded annually, is $47,610.
Calculate the present value of $100,000 for each of the following items (parts a–f ) using these facts, except
a. Interest is compounded semiannually.
b. Interest is compounded quarterly.
c. A discount rate of 12% is used.
d. A discount rate of 20% is used.
e. The cash will be received in three years.
f. The cash will be received in seven years.
Answers
Status NEW
Posted 22 Jul 2017 10:07 AM
My Price 8.00
Hel-----------lo -----------Sir-----------/Ma-----------dam----------- Â----------- -----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------sol-----------uti-----------on.-----------Ple-----------ase----------- pi-----------ng -----------me -----------on -----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be----------- ca-----------tch-----------
Not Rated(0)