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Question 2: Answer the Followings with True/False 2 points) 1- If the interest rate is positive, then the present value of an annuity due will
Question 2: Answer the Followings with True/False 2 points) 1- If the interest rate is positive, then the present value of an annuity due will be less than the present value of an ordinary annuity. 2- An example of perpetuity is a bond with an interest rate that remains constant over the life of the bond. 3- We can use the present value of an annuity formula to calculate constant annual loan payments. 4- The present value of a $100 perpetuity discounted at 5% is $2,000 1 2 3 4
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