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What is meant by the power of compounding

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Reference no: EM133398800

Questions

1. What is meant by the power of compounding? What are three solutions techniques for solving lump-sum compounding problems? Which techniques is the most efficient?

2. What is discounting and what are the three techniques for solving lump-sum discounting problems? How does the present value of an amount to be received in the future change as the payment date is extended and the interest rate increases?

3. What is discounting and what are the three techniques for solving lump-sum discounting problems? How does the present value of an amount to be received in the future change as the payment date is extended and the interest rate increases?

Reference no: EM133398800

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