How to calculate present value with period of 5 years and 6 months? Besides that, there is interest changes and compounded differently. Is there any formula?
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1$$\text{Present Value}=\frac{\text{Future Value}}{(1+i)^{5.5}}$$ i=interest rate p.a. The second question is not precise enough. – callculus42 Nov 06 '14 at 15:20
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Hi, thank you for your time to reply. My second question refer to if the interest rate for the first 2 years is 8% and compounded quarterly and interest rate for the last 3 years is 10 % and compounded semi annually. What are the formula for this? – noobie Nov 06 '14 at 16:32
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Then $FV=PV \cdot \left( 1+\frac{i}{4} \right)^{4 \cdot 2}\cdot \left( 1+\frac{i}{2} \right)^{2 \cdot 3}$ – callculus42 Nov 06 '14 at 16:53
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Hi, I've solved the question! Thanks alot for your help! – noobie Nov 06 '14 at 17:03
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That´s fine. You are welcome. – callculus42 Nov 06 '14 at 17:04