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Take a Test-Cameron Scc c https://www.mathxl.com/Student PlayerTest.aspx?testid.136 1869028center in.yes AppsYouTube, Broadcas y Home y Twitter /Home-Blackboard Learn Ds.."wteo- Watch The St. Qulz: Chapters 3 and 4 This Question: 1 pt This Test: 20 pts Time Remaining: o For each of the following cases, find the present value at time zero at the given nominal interest rate. Number of Compounding Periods in the Year (m) Nominal Deposit Interest Periods Present Rate (%) FV Deposit (5) (Yrs) Value (5) 200 300 900 18 14 20 12 Number of Compounding Periods irn the Year (m) Nominal Interest Rate (%) Deposit Periods Present FV Deposit (5) 200 300 900 (Yrs) Value (s) 637.09 (Round to the nearest cent.) 18 (Rund to the nearest cent.) (Round to the nearest cent.) 20

Explanation / Answer

PV = FV / (1+r)n

FV= 200 , r = 18%, n= 7 years

PV = 200/(1+0.18)7=$62.78

FV= 300 , r= 7% (14%/2) , n= 40 (20 years)

PV= 300/(1+0.07)40 = $20.03

FV= 900, r= 0.25% (3/12) , n= 72 ( 6 multiply by 12 since it is monthly compounding)

PV= 900/(1+0.0025)72 = $751.91

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