(See Solution) PRESENT VALUE FOR VARIOUS DISCOUNTING PERIODS. Find the present value of $500 dye in the future under each of these conditions: 12% nominal rate,
Question: PRESENT VALUE FOR VARIOUS DISCOUNTING PERIODS. Find the present value of $500 dye in the future under each of these conditions:
- 12% nominal rate, semiannual compounding, discounted back 5 years
- 12% nominal rate, quarterly compounding, discounted back 5 years
- 12% nominal rate, monthly compounding discounted back 1 year
- Why do the differences in the PVs occur?
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