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( a ) An investor receives $ 1 , 1 0 0 in one year in return for an investment of $ 1 , 0

(a) An investor receives $1,100 in one year in return for an investment of $1,000 now.
Calculate the percentage return per annum with
(i) Annual compounding.
(ii) Semi-annual compounding.
(iii) Monthly compounding.
(iv) Continuous compounding.
(b) What rate of interest with continuous compounding is equivalent to 15% per annum
with monthly compounding?
(c) A deposit account pays 12% per annum with continuous compounding, but interest
is actually paid quarterly. How much interest will be paid each quarter on a $10,000
deposit?
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