Discussion Question 1Why is time such an important factor in financial matters?

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Discussion Question 1Why is time such an important factor in financial matters? How doesthe frequency of interest compounding regardless of the rate ofinterest or period of accumulation affect the future value of anygiven amount? Explain your answer. How might you use the principlesof the time value of money to your financial benefit?Discussion Question 2What are annuities and why is it necessary to calculate theirpresent value? Why is the calculation of the present value of anyfuture amount important? Why is the present value of any futureamount greater when the discount rate is lower? Explain youranswers.

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