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What are the major parts of time value of money

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What are the major parts of time value of money? Discuss in detail why present value is called discounting and why we name the future value as compounding? What are the major steps of Amortization? Solve the following problem:

If you are borrowing $15,000 at 8% interest rate, compounded yearly. Amortize the loan if payments are made for 4 years.

Reference no: EM132555268

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