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(a) A loan of 1,000 is repayable in 182 days at a simple discount of 2% per annum. (i) Calculate the amount repayable in 182
(a) A loan of 1,000 is repayable in 182 days at a simple discount of 2% per annum.
(i) Calculate the amount repayable in 182 days' time. [1 mark]
(ii) Calculate the equivalent simple rate of interest per annum. [2 marks]
(b) An amount of 10,000 is invested in a fixed deposit for 2 years at a nominal rate of interest of 4% per annum convertible quarterly.
The accumulated value is subsequently placed in a savings account at a nominal rate of interest of 2% per annum convertible half-yearly. Calculate the accumulated value at the end of the 3 years.
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