Assignment - Application of Future Value and Present Value
1. Calculate the present value in ten years of $2,000 received today if your investments pay:
a. 6 percent compounded annually
Rate
Nper
PMT
FV
PV
b. 8 percent compounded annually
Rate
Nper
PMT
FV
PV
c. 10 percent compounded annually
Rate
Nper
PMT
FV
PV
d. 10 percent compounded semiannually
Rate
Nper
PMT
FV
PV
e. 10 percent compounded quarterly
Rate
Nper
PMT
FV
PV
2. What is the relationship between present values and interest rates and present values and the number of compounding periods per year?