Find the present value of $700 due in the future under each of these conditions: a. 6% nominal rate, semiannual compounding, discounted back 8 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. 6% nominal rate, quarterly compounding, discounted back 8 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. S d. Why do the differences in the PVS occur?

Find the amount to which $300 will grow under each of these conditions: a. 6% compounded annually for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. $   b. 6% compounded semiannually for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. $   c. 6% compounded quarterly for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. $   d. 6% compounded monthly for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. $   e. 6% compounded daily for 10 years. Assume 365-days in a year. Do not round intermediate calculations. Round your answer to the nearest cent. $   f.Why does the observed pattern of FVs occur?

Find the future values of the following ordinary annuities: a. FV of $600 paid each 6 months for 5 years at a nominal rate of 6% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. FV of $300 paid each 3 months for 5 years at a nominal rate of 6% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur? 819000.0 The annuity in part (b) is compounded more frequently, therefore, more interest is earned on previously-earned interest. V

Raghubhai

What is the future value of $1,280 in 18 years assuming an interest rate of 8.8 percent compounded semiannually? (Round time value factors to 6 decimal places and final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456 should be entered as 123456.)

Future Value of an Annuity for Various Compounding Periods Find the future values of the following ordinary annuities. FV of $600 each 6 months for 4 years at a nominal rate of 12%, compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $   FV of $300 each 3 months for 4 years at a nominal rate of 12%, compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $   The annuities described in parts a and b have the same amount of money paid into them during the 4-year period, and both earn interest at the same nominal rate, yet the annuity in part b earns more than the one in part a over the 4 years. Why does this occur?

Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $300 per year for 8 years at 10%. $   $150 per year for 4 years at 5%. $   $200 per year for 4 years at 0%. $   Rework parts a, b, and c assuming they are annuities due. Future value of $300 per year for 8 years at 10%: $   Future value of $150 per year for 4 years at 5%: $   Future value of $200 per year for 4 years at 0%: $

What is the discounted value of payments of $120.00 made at the end of each month for 7.5 years if interest is 8% compounded monthly? The discounted value is S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Find the future values of the following ordinary annuities: FV of $300 paid each 6 months for 5 years at a nominal rate of 12% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $   FV of $150 paid each 3 months for 5 years at a nominal rate of 12% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $   These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur?

Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $300 per year for 14 years at 8%. $ $150 per year for 7 years at 4%. $ $1,000 per year for 7 years at 0%. $ Rework previous parts assuming they are annuities due. Present value of $300 per year for 14 years at 8%: $ Present value of $150 per year for 7 years at 4%: $