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Consider a future value of $1,000, 5 years in the future. Assume that the nominal Interest rate is 9.00%. If you are calculating the present value of this cash flow under semiannual (twice per year) compounding, you would enter 5 4.50% for 1/Y Into your financial calculator. for N and Entering in the values you just calculated for N and 1/4, along with a PMT=0 and a PV=$1,000, into a financial calculator yields a present value of approximately $ with semiannual compounding. If you are calculating the present value of this cash flow under quarterly (four times per year) compounding, you would enter for 1/2 into your financial calculator. for Nand Entering in the values vu just calculated for N and 1/V, along with a PMT-0 and a FV-$1,000, into a financial calculator yields a present value of approximately 5 with quarterly compounding, Suppose now that the cash flow of $1,000 only 1 year in the future. If you are calculating the present value of this cash flow under quarterly (12 times per year) compounding, you would enter for 1/Y into your Pinancial calculator for N and Entering in the values you just calculated for N and 1/, along with a PMT-O and a FV-$1,000, into a financial calculator yields a present value of approximately with monthly compounding

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