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- What decisions do you make that involve time value of money calculations? Use examples and explain your answers.
- Assume you have a mortgage with a balance of $200,000, at 5% fixed-rate interest and 20 years remaining on the loan. Would you benefit in any way from making an extra payment of $100 each month on the mortgage? Justify your answers.
- The present or future value calculations are dependent upon the interest rates used in the calculations. How would you identify the best interest rate to use in a time value calculation? Explain your answer.
