1. Describe the relationship between the Present Value Equation and The Future Value equation and explain why is the present value of a future sum is always less than the sum future value.?
2. A mutual fund sold $37 million of assets during the year and purchased $31 million in assets. If the average daily assets of the fund were $96 million, what was the fund turnover?
3. Explain the two basic conditions that underlie an annuity and how you would solve time value problems that do not satisfy these conditions.?