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please can you help answer these questions The following interest rate structure applies to your bank account: - Annual effective interest rate of 10% during
please can you help answer these questions
The following interest rate structure applies to your bank account: - Annual effective interest rate of 10% during the first 0.5 years. - Annual interest rate of 8% for the next 1.5 years - Effective annual discount rate of 9%, for the next 3 years. - Simple annual discount rate of 11% thereafter. (i) What is the accumulated value of the following investments at t=10 ( t measured in years): Inflow of R 1800 now, outflow of R700 after 3.5 years from now and an outflow of R 1050 exactly 7 years from now. [2.5] (ii) What is the present value of the following investments: Outflow of R500 at t=0, inflow of R2000 at t=2, outflow of R1600 at t=4.5 and outflow of R750 at t=10. However, the interest during the second interest rate period above is now simple interest. [2.5] Step by Step Solution
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