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Q8: The sum of $500,000 has been placed in an investment which earns interest at the rate 12 percent per year, compounded quarterly. Draw the
Q8: The sum of $500,000 has been placed in an investment which earns interest at the rate 12 percent per year, compounded quarterly. Draw the table with regards to quarterly compounding. What is total interest for the year? (a) Determine the compound amount after 1 year if interest is compounded semiannually instead of quarterly. (b) Under which compounding plan is total interest higher? By how much
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