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fin111 homewrok week 7 - Critical thinking 4 5 10 Question...

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Critical thinking 4 5 10 Question 4 what are two factors to be considered in time value of money First the value of a dollar invested at a positive intrest rate grows over times and decondly the trade off between money today and money at some future date depends in part on the rate of intrest you can earn by investing Queston 5 . differentiate between compounding and discounting Compounding is the process by which intrest earned on an investment is reinvested, so in future periods intrest is earned on the intrest as well as the principal which discounting is
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