Friday, April 22, 2016

Present and future values for different periods

Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Round your answers to the nearest cent.

  1. An initial $400 compounded for 1 year at 10%.$

  2. An initial $400 compounded for 2 years at 10%.$

  3. The present value of $400 due in 1 year at a discount rate of 10%.$

  4. The present value of $400 due in 2 years at a discount rate of 10%.


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