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Answer the following questions! 1. Explain the relationship between compounding and discounting, between future and present value. 2. Explain the difference between an ordinary annuity

Answer the following questions!

1. Explain the relationship between compounding and discounting, between future and present value.

2. Explain the difference between an ordinary annuity and an annuity due, and calculate the difference in their values. Calculate the value of a perpetuity.

3. Demonstrate how to find the present and future values of an uneven series of cash flows.

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