Question

eBook Problem Walk-Through Find the present value of $500 due in the future under each of these conditions: a. 6% nominal rate, semiannual compounding, discounted back 5 years. Do not round intermediate calculations. Round your answer to the nearest cent. b. 6% nominal rate, quarterly compounding, discounted back 5 years. Do not round intermediate calculations. Round your answer to the nearest cent. c. 6% nominal rate, monthly compounding, discounted back 1 year. Do not round intermediate calculations. Round your answer to the nearest cent. d. Why do the differences in the PS OCCUE? The present als decline as periods per year increase The present value decline apare per vederea The present values increase d per year increase The present values are not affected by changes in the number of periode per year The present values are positively related to the number of discounting periods per year Grade i New Save Continue Continue without saving

can you pleas answe this two question please

Answer 1

	FV =	Future Value
	PV =	Present Value
	r =	rate of interest
	n=	no of period
a)	PV =	FV/ (1 + r )^n
	PV =	500 / ((1 + 6%/2)^10)
	PV =	372.05
b)	PV =	FV/ (1 + r )^n
	PV =	500 / ((1 + 6%/4)^20)
	PV =	371.24
c)	PV =	FV/ (1 + r )^n
	PV =	500 / ((1 + 6%/12)^12)
	PV =	470.95
d)	The present value declines as periods per year increases