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2. An annuity consists of semiannual payments of $950 for a term of 2 years. Using a nominal rate of 9% compounded quarterly, calculate the

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2. An annuity consists of semiannual payments of $950 for a term of 2 years. Using a nominal rate of 9% compounded quarterly, calculate the ordinary annuity's: (7 marks) a. Present value. b. Future value. 1 3. Other factors being equal, is the PV of an annuity due larger if the given nominal discount rate is compounded monthly instead of annually? Explain briefly (7 marks)

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