The future and present values for different periods.
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Present and future values for different periods. Find the following values, using the equations and then a financial calculator compounding/discounting occurs annually.
a. An initial $500 compounded for 1 year at 6%.
b. An initial $500 compounded for 2 years at 6%.
c. The present value of $500 due in 1 year at a discount rate of 6%.
d. The present value of $500 due in 2 years at a discount rate of 6%.
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Solution Summary
The solution shows how to solve for present and future values for different periods based on interest compounded and the use of a financial calculator.
Education
- BA, Ain Shams University, Cairo Egypt
- MBA, California State University, Sacramento
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