Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
- The present value of $1,000 to be received in 3 years when interest is 12 percent compounded quarterly is computed by discounting at

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
- The present value of $1,000 to be received in 3 years when interest is 12 percent compounded quarterly is computed by discounting at

Quizplus · Accepted Answer

When interest is compounded quarterly, the annual interest rate is divided by 4, resulting in 3% per quarter. Over 3 years, there are 12 quarters, so the present value is calculated using 3% for 12 periods.

Use the Present Value and Future Value Tables Included in Appendix