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(a) A posted interest rate is given as 9.50% s.a. What is the equivalent rate compounded monthly? (b) You wish to have $1,000,000 exactly 10
(a) A posted interest rate is given as 9.50% s.a. What is the equivalent rate compounded monthly? (b) You wish to have $1,000,000 exactly 10 years from now. In exactly one year from now, you will make the first of 10 equal annual deposits into a savings account, with the last deposit being 10 years from today. If the appropriate discount rate is 10% ann., what must the size of your first deposit be?
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