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CENGAGE MINDTAP

Ch 05-End-of-Chapter Problems - Time Value of Money

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1. Problem 5.09 (Present and Future Values for Different Periods)

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Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest

cent.

a. An initial $600 compounded for 1 year at 9%.

$

b. An initial $600 compounded for 2 years at 9%.

$

c. The present value of $600 due in 1 year at a discount rate of 9%.

$

d. The present value of $600 due in 2 years at a discount rate of 9%.

$

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