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1. Discuss time value of money and its importance. Explain the relationship of discounting and compounding. Suppose you were considering depositing your savings in one
1. Discuss time value of money and its importance. Explain the relationship of discounting and compounding. Suppose you were considering depositing your savings in one of three banks, all of which pay 5 percent interest; bank A compounds annually, bank B compounds semiannually, and bank C compounds daily. Which bank would you choose? Why?
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