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(a) 5000 is invested for three years at 8% per annum compounded every six months. Calculate the total value of the investment. (1 mark) (b)
(a) 5000 is invested for three years at 8% per annum compounded every six months. Calculate the total value of the investment. (1 mark) (b) Compare the return on the investment when interest is compounded annually to that when compounded every 6 months. (2 mark) (c) Calculate the number of years it will take for a sum of 5000 to grow to 20000 when invested at 5.5% interest compounded annually. (3 marks) (d) 200 is invested quarterly in a savings account at an annual rate of interest of 4.5% compounded quarterly. How much money is in the account at the end of 4 years? (4 marks)
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