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For liquidity purposes, a client keeps R100 000 in a bank account. The bank quotes a stated annual interest rate of 8%. The banks service

For liquidity purposes, a client keeps R100 000 in a bank account. The bank quotes a stated annual interest rate of 8%. The banks service representative explains that the stated rate is the rate one would earn if one were to cash out rather than invest the interest payments. How much will your client have in his account at the end of one year, assuming no additions or withdrawals, using quarterly compounding?

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