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a. What is the relationship between discounting and? compounding? b. What is the relationship between the? present-value...

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Finance

a. What is the relationship between discounting and?compounding?

b. What is the relationship between the? present-value factorand the annuity? present-value factor?

c. What will 4,400 invested for 13 years at 12 percentcompounded annually grow to?

ii. How many years it will take 570 to grow to 2727.22 if it isinvested at 11 percent compounded annually?

iii. At what rate would 1500 have to be invested to grow to6339.35 in 11years?

Answer & Explanation Solved by verified expert
4.2 Ratings (657 Votes)
a Discounting and Compounding both are used to adjust timevalue of money The value of 1 today is more than the value of 11 year later    See Answer
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Transcribed Image Text

a. What is the relationship between discounting and?compounding?b. What is the relationship between the? present-value factorand the annuity? present-value factor?c. What will 4,400 invested for 13 years at 12 percentcompounded annually grow to?ii. How many years it will take 570 to grow to 2727.22 if it isinvested at 11 percent compounded annually?iii. At what rate would 1500 have to be invested to grow to6339.35 in 11years?

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