Given the cash flow below: Revenue,S 2,500 2,500 2,500 2,500 year 1 3 4 Calculate the present value (P) and the future value (F) for the following scenarios: a) The interest rate is 6% compounded daily b) The interest rate is 6% compounded monthly =) The interest rate is 6% compounded semi-annually d) Compare the results and explain the effect of compounding periods on the present and future values

Given the cash flow below: Revenue,S 2,500 2,500 2,500 2,500 year 1 3 4 Calculate the present value (P) and the future value (F) for the following scenarios: a) The interest rate is 6% compounded daily b) The interest rate is 6% compounded monthly =) The interest rate is 6% compounded semi-annually d) Compare the results and explain the effect of compounding periods on the present and future values

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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