Problem
Time Value of Money Address all 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.
Task
a) Explain the difference between nominal, periodic, and effective interest rates.
b) Discuss how the time value of money works and why it is an important concept in finance.