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Consider a future value of $500, 5 years in the future. Assume that the nominal...

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Finance

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Consider a future value of $500, 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 for I/Y into your financial calculator. for N and Entering in the values you just calculated for N and I/, along with a PMT-O and a FV=$500, 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/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 FV=$500, into a financial calculator yields a present value of approximately $ with quarterly compounding Suppose now that the cash flow of $500 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/V 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 FV-$500, into a financial calculator yields a present value of approximately $ with monthly compounding

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