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1. Exercise One: Compute the Future Value of 100,000 USD (U.S. Dollars), 10 years from today, if the interest rate is 8.25%, assuming: (a) simple

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1. Exercise One: Compute the Future Value of 100,000 USD (U.S. Dollars), 10 years from today, if the interest rate is 8.25%, assuming: (a) simple interest, (b) daily compounding, (c) continuous compounding. Exercise Two: Compute the Future Value of 5,000 USD (U.s. Dollars), 20 years from today, if the interest rate is 6.25%, assuming: (a) simple interest, (b) quarterly compounding, (c) continuous compounding. 2. 3. Exercise Three: Compute the Present Value of 30,000 USD (U.S. Dollars), received 15 vears from today, if the interest rate is 7.45%, assuming: (a) simple interest, (b) daily compounding, (c) continuous compounding. Exercise Four: Compute the Present Value of 25,000,000 USD (U.S. Dollars), received 35 years from today, if the interest rate is 7.25%, assuming: (a) simple interest, (b) monthly compounding, (c) continuous compounding. 4. Exercise Five: The target future value of an investment is $800,000, and its present value is $250,000. Assuming an average interest rate of 4.25%, find the investment horizon under, (a) quarterly compounding, (b) daily compounding. 5. ir

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