Determining the current value using discount rate


1) Susie can earn the nominal annual rate of return of= 12%, compounded semi-annually. If Susie made 40 consecutive semi-annual deposits of= $500 each, with first deposit being made today, how much will she accrue at the ending of Year 20?

2) Determine the current value of= $300 received at starting of each year for 5 years? Suppose that 1st payment is not received until beginning of 3rd year (therefore last payment is got at the starting of 7th year). Use 10% discount rate.

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Finance Basics: Determining the current value using discount rate
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