Question

Present value for various discounting periods

Find the present value of $300 due in the future under each of these conditions:

1. 15% nominal rate, semiannual compounding, discounted back 8 years. Round your answer to the nearest cent.
   $  

2. 15% nominal rate, quarterly compounding, discounted back 8 years. Round your answer to the nearest cent.
   $  

3. 15% nominal rate, monthly compounding, discounted back 1 year. Round your answer to the nearest cent.
   $  

4. Why do the differences in the PVs occur?

Answer 1