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Find the following values. Compounding/discounting occurs annually. a. An initial $200 compounded for 10 years at 4% b. An initial $200 compounded for 10 years
Find the following values. Compounding/discounting occurs annually. a. An initial $200 compounded for 10 years at 4% b. An initial $200 compounded for 10 years at 8% c. The present value of $200 due in 10 years at 4% d. The present value of $1, 870 due in 10 years at 8% and at 4% e. Define present value and illustrate it using a time line with data from part d. How are present values affected by interest rates
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