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Problem 4-17 Present Value for Various Compounding Periods Find the present value of $600 due in the...

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Finance

Problem 4-17
Present Value for Various Compounding Periods

Find the present value of $600 due in the future under each ofthe following conditions. Do not round intermediate calculations.Round your answers to the nearest cent.

  1. 10% nominal rate, semiannual compounding, discounted back 5years
    $   
  2. 10% nominal rate, quarterly compounding, discounted back 5years
    $   
  3. 10% nominal rate, monthly compounding, discounted back 1year
    $  

Answer & Explanation Solved by verified expert
3.8 Ratings (634 Votes)
aInformation providedFuture value 600Interest rate 102 5 per semiannual periodTime 5 years2 10 semiannual periodsThe present value is calculated by entering the below in afinancial calculatorFV    See Answer
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Transcribed Image Text

Problem 4-17Present Value for Various Compounding PeriodsFind the present value of $600 due in the future under each ofthe following conditions. Do not round intermediate calculations.Round your answers to the nearest cent.10% nominal rate, semiannual compounding, discounted back 5years$   10% nominal rate, quarterly compounding, discounted back 5years$   10% nominal rate, monthly compounding, discounted back 1year$  

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