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c. Sarah has $50,000 in an investment account which pays interest at a rate of 0.8% per month. Suppose that Sarah makes no further deposit

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c. Sarah has $50,000 in an investment account which pays interest at a rate of 0.8% per month. Suppose that Sarah makes no further deposit or withdrawal, how much will she has in the account in 12 years? Show all your calculations. 4 marks d. Lucas spends $2,000 every month on buying coffee from the cafes and food shops. Assume the market interest rate for Lucas is 0.6% per month, what is the present value of eliminating this cost by having coffee at home? (You may consider the $2,000 monthly cost of buying coffee as monthly perpetuity). Show all your calculations

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