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(d) Assume an annual interest is 20% for 10 years. Address the following questions by using annual, semiannual, and quarterly compounding periods. Required: (i) Calculate
(d) Assume an annual interest is 20% for 10 years. Address the following questions by using annual, semiannual, and quarterly compounding periods. Required: (i) Calculate the future value if $5,000 is deposited initially. (6 marks) (ii) Determine the effective annual rate (EAR). (4 marks) [Total: 25 Marks]
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