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Question 1: a) (2 pts) Briefly describe the concept of compound interest rate and the value of money in time. Also give an example. b)

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Question 1: a) (2 pts) Briefly describe the concept of compound interest rate and the value of money in time. Also give an example. b) (5 pts) Deduce the equation for the present value of the interest earned if an amount of money is invested today at a compound interest rate annually with monthly payments for years. c) (3 pts) How does the equation deducted on (b) changes for simple interest rate

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