Problem
You invest $2,000 at a nominal interest rate of 6% compounded monthly. How much will you have required in 8 semesters?
How many quarters does it take to double the value of an investment, if the nominal interest rate is 6% (compounded semi-annually)?
A capital project at a cost of $11,000 should generate cash flow of $1000 in one year, then cash flow of $1100 in three semesters, then cash flow of $1200 in two years, then cash flow of 1300 $ at the end of each of the following semesters over an infinite number of periods. What is its NPV with a discount rate of 5% per semester?