DESCRIPTIVE QUESTIONS
  1. How do you find the future value of an amount invested today? Explain with the help of an example.
  2. Why is it necessary to calculate the present value of an amount expected to be received in future? How is it calculated?
  3. Explain the procedure for calculating the present value of:
    1. regular annuity
    2. annuity due
    3. deferred annuity
  4. Distinguish between annual percentage yield and annual percentage rate. Give an example in support of your explanation.

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