Please answer the questions below utilizing the Accounting workbook as a guide.

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Please answer the questions below utilizing the Accounting workbook as a guide.

Please answer the questions below utilizing the Accounting workbook as a guide.
1. Briefly describe the patterns of interest and principal payments over the years and
explain why the observed patterns occur.
2. Based on the embedded chart, describe the full impact of increasing the number of
annual compounding periods on the future value of an initial deposit.
3. Explain why the implied annual interest rate decreases as the number of compounding
periods increases in the Data Table in cells A11:B17.
4. Fully state the method the XIRR function uses to calculate the annual return for uneven
cash flows.

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