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1) Determine the present value of 60,000 received in 4 years time if the discount rate is 7% compounded monthly. 2) A principle of 18,000

1) Determine the present value of 60,000 received in 4 years time if the discount rate is 7% compounded monthly.

2) A principle of 18,000 is invested at 5% interest for 8 years: a) Calculate the future value (FV) if the interest rate is compounded:

i) Monthly (3 marks)

ii) Daily (3 marks)

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