Question: 1. What is the mathematical relationship between simple and compound interest? Explain how and why the simple and compound interest are different. 2. We cannot
1. What is the mathematical relationship between simple and compound interest? Explain how and why the simple and compound interest are different.
2. We cannot determine the present value of uneven future cash flows. True or False? Explain.
3. Why do corporate finance practitioners often refer to the interest rate as the discount rate? Are both rates the same number? Explain.
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