Question: 1. Define the Effective Annual Rate (EAR) and explain its purpose. 2. List the two (2) important relationships pertaining to present value. 3. Define an

1. Define the Effective Annual Rate (EAR) and explain its purpose.

1. Define the Effective Annual Rate (EAR) and explain its purpose. 2. List the two (2) important relationships pertaining to present value. 3. Define an annuity and distinguish between and ordinary annuity and an annuity due. (qive proper explanations)

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