Question: Explain interest.Contrast simple interest and compound interest Explain the time value of money and how it can be viewed as compensation. Define discounting and compounding.

Explain interest.Contrast simple interest and compound interest

Explain the time value of money and how it can be viewed as compensation.

Define discounting and compounding.

Conceptually, what is the difference between a future value and a present value?

How do you compute the future value of a single sum? Explain the factors in the future value of a single sum table.

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