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3. Do each of the following: (a) Compute the present value of (1+r)n due in n years at an effective annual interest rate of i.

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3. Do each of the following: (a) Compute the present value of (1+r)n due in n years at an effective annual interest rate of i. (b) Compute the present value of 1 due in n years at an effective annual interest rate of 1+rir. (c) Compare your answers. (d) Identify the interest rate used in part b and explain why your answer to c makes sense

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