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Q1 A) If you consider investing 100,000 at a semi-annually compounded interest rate of 6% for one year. What are the gross and net returns?

Q1 A) If you consider investing 100,000 at a semi-annually compounded interest rate of 6% for one

year. What are the gross and net returns? Now do the same if this was a monthly

compounded rate and a continuously compounded rate. Now compare the three net returns

to the interest rate.

B) Can you explain the ordering of these four quantities?

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