Question: 12 points Save Answer Please answer the following questions (each question is worth 2 points for a total of 12 points) 1. What is the

12 points Save Answer Please answer the following questions (each question

12 points Save Answer Please answer the following questions (each question is worth 2 points for a total of 12 points) 1. What is the time value of money? Why is it so important? 2 The processes of discounting and compounding are related. Explain this relationship 3. How would an increase in the interest rate () or a decrease in the holding period (n) affect the future value (FV) of a sum of money? Explain why 4 Suppose you were considering depositing your savings in one of three banks, all of which pay 5 percent interest bank A compounds annually, bank B compounds semiannually, and bank C compounds daily. Which bank would you choose? Why? 5. What is an annuity? Give some examples of annuities What is the difference between an annuity and a perpetuity? 6. What is the "Rule of 72" 2 Please explain

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