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1. An ordinary annuity has cash flows at the end of each period. True or False 2. Compounding interest means that interest will generate in
1. An ordinary annuity has cash flows at the end of each period. True or False
2. Compounding interest means that interest will generate in every time period. True or False
3. The present value of a $100 perpetuity discounted at 10% is $1,000. True or False
4. A rational investor would prefer to receive $1,200 today rather than $100 per month for 12 months. True or False
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