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21 November, 04:31

Find the following values:a. An initial $500 compounded for 1 year at 4%b. An initial $500 compounded for 2 years at 4%c. The present value of $500 due in 1 year at a 4% discount rated. The present value of $500 due in 2 years at a 4% discount rate

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  1. 21 November, 07:32
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    a) A = 500 (1 +.04) ^1 = 520

    b) A = 500 (1 +.04) ^2 = 540.8

    c) A = 500 (1 -.04) ^1 = 480

    d) A = 500 (1 -.04) ^2 = 460.8
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