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Interest Rates

Address all of the question prompts below. Support your responses with appropriate evidence from your course textbook and/or credible information from the Internet. Your paper should be between 2 and 3 pages long, excluding the title page and references page.

Tasks:

· Explain the difference between nominal, periodic, and effective interest rates.

· Discuss how the time value of money works and why it is an important concept in finance.

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