Calculate the following values assuming a discount rate of 12 per cent: (a) 500 compounded for five

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Calculate the following values assuming a discount rate of 12 per cent:

(a) £500 compounded for five years;

(b) the present value of £500 to be received in five years’ time;

(c) the present value of £500 received each year for ever;

(d) the present value of £500 to be received each year for the next five years.

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