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Bank of Dreams is a bank which makes your investment dreams come true. They offer a dreamy customer service and they like to give clients
Bank of Dreams is a bank which makes your investment dreams come true. They offer a dreamy customer service and they like to give clients strategic investment options. (a) (4 marks) The first option that Bank of Dreams offers is an investment plan. You invest $80,000 at an interest rate of 12% per annum compounded quarterly. Calculate accumulated amount after 6 years. (b) (6 marks) The second investment option that the Bank of Dreams is offering consists of investing $32,000 today and then making regular deposits of $2,000 at the end of every 3 months. The applicable interest rate is 12% per annum compounded quarterly. Calculate the accumulated amount at the end of 6 years. (c) (2 marks) Which investment option offers you a larger accumulated amount at the end of the 6 years
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