Question: 1.What is the relationship between present value and future value? 2.Why is compounding on a monthly basis better than compounding on an annual basis? 3.How

1.What is the relationship between present value and future value?

2.Why is compounding on a monthly basis better than compounding on an annual basis?

3.How do we determine the appropriate discount rate to use when finding present value?

4.What do we mean when we refer to an annuity? What is the difference between an annuity and an annuity due?

Alternative Assignment 3

1.Problem 2

2.Problem 3

3.Problem 4

Be sure to show all your formulas and calculations.

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