Why do the difference in the pvs occur

Reference no: EM132049759

Question: Present value for various discounting periods Find the present value of $500 due in the future under each of these conditions.

a. 4% nominal rate, semiannual compounding discounted back 9 years. Round your answer to the nearest cent.

b. 4% nominal rate, quarterly compounding, discounted back 9 years. Round your answer to the nearest cent.

c. 4% nominal rate, monthly compounding discounted back 1 year, Round your answer to the nearest cent.

d. Why do the difference in the PVs occur?

Reference no: EM132049759

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