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Q1. (a) Alice plans to accumulate RM300,000 twenty years from today to sponsor her son's education. If an investment plan offers her a nominal rate
Q1. (a) Alice plans to accumulate RM300,000 twenty years from today to sponsor her son's education. If an investment plan offers her a nominal rate of interest 8% compounded monthly, calculate the amount she must invest today. (5 marks) (b) You are given 8 = for 251510. Find any one-year interval between time n and n+1, with n = 2, 3, ..., 9, calculate the equivalent d) (7 marks) 1-1 (c) Find an expression for the fraction of a period at which the excess of accumulated values computed at simple interest over compound interest is a maximum. (6 marks) (d) At time t=0, RM1,500 is deposited into a saving account. No other amounts are deposited. The accumulated amount in the account at any time t, is given by A(1)=1500(1+2012 At time x, the force of interest is equals to 0.04. Solve x. (7 marks) [Total : 25 marks]
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