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Explain what an annuity is

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Question 1: Discuss how time value of money in the context of compounding interest.

Question 2: Explain what an annuity is and what are the two most common types of annuity. Explain how the present value and future value of an annuity is determined.

Question 3: Extend the notion of compounding mentioned in your answer to part "a" above to general situations where compounding is induced by growth, inflation, or deflation.

Reference no: EM132613454

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