How does a perpetuity differ from an annuity

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1. A savings account advertises that "interest is compounded continuously and paid quarterly." What does this mean?

2. Give an example of a perpetuity. How does a perpetuity differ from an annuity?

3. Explain how to determine the present value of an uneven cash flow stream.

4. Evaluate the following statement: "The development of powerful, inexpensive microcomputers has made the hand calculator as obsolete as the slide rule."

5. What is the relationship between the concepts of net present value and shareholder wealth maximization?

Reference no: EM13928573

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