In a scenario where in there is a higher number of compounding periods within a given year, this will result to: (1) a higher future value of a lump sum investment at Time 0 (2) a lower future value of a lump sum investment at Time 0 (3) a greater present value of a given lump sum to be received at some future date. (4) a lower present value of a given lump sum to be received at some future date. (5) no discrepancy on future value given a lower number of periods (6) no discrepancy on present value given a lower number of periods (7) computation for present value and future value will remain the same given there is a lower number of periods. (8) there will be an effect as to computation for present value and future value specifically in the number of periods and rates being used.

In a scenario where in there is a higher number of compounding periods within a given year, this will result to: (1) a higher future value of a lump sum investment at Time 0 (2) a lower future value of a lump sum investment at Time 0 (3) a greater present value of a given lump sum to be received at some future date. (4) a lower present value of a given lump sum to be received at some future date. (5) no discrepancy on future value given a lower number of periods (6) no discrepancy on present value given a lower number of periods (7) computation for present value and future value will remain the same given there is a lower number of periods. (8) there will be an effect as to computation for present value and future value specifically in the number of periods and rates being used.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 11QTD

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