In: Finance
h. What would the FV and the PV for parts a and c be if the interest rate were 10% with semiannual compounding rather than 10% with annual compounding? | |||||||
Part a. FV with semiannual compounding: | Orig. Inputs | New Inputs | |||||
Inputs: | PV = | 1000 | 1000 | ||||
I/YR = | 10% | 5% | |||||
N = | 5 | 10 | |||||
Formula: | FV = PV(1+I)^N = | ||||||
Wizard (FV): | |||||||
Part c. PV with semiannual compounding: | Orig. Inputs | New Inputs | |||||
Inputs: | FV = | 1000 | 1000 | ||||
I/YR = | 10% | 5% | |||||
N = | 5 | 10 | |||||
Formula: | PV = FV/(1+I)^N = | ||||||
Wizard (PV): |