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5. Amir is trying to decide between two investments. The first cost RM and is expected to generate a continuous income stream at the


5. Amir is trying to decide between two investments. The first cost RM and is expected to generate a continuous income stream at the rate of RM per year. The second investment is an annuity that cost RM to purchase and generates income at the constant rate of RM per year. If the prevailing annual interest rate remains fixed at 5% compounded continuously, which account is better over a 5-years term? (10 marks)

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