What is the difference between an ordinary annuity and an annuity due?
How can we calculate the value of an annuity due taking the value of an ordinary annuity, if both annuities have the same number of years, and the same value year after year? a)We need to divide the value of the ordinary annuity by the gross rate of return. b) We need to add
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What is the difference between the inflation premium and the inflation rate?
Which of the following sentences better represent the difference between the inflation rate and the inflation premium? a) The inflation premium is an extra return that compensates investors for expected inflation. b) The inflation premium is monitored by central banks and it impacts the real value of money over time. c) The inflation rate
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