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Question 4 a) If you deposit $200,000 in an account that pays an annual interest rate of 10% compounded monthly, what will your account balance
Question 4 a) If you deposit $200,000 in an account that pays an annual interest rate of 10% compounded monthly, what will your account balance be in 15 years? [05 Marks] FutureValueinYearn(FVn)= Present AnnualInterestRate(i)Compounding(PV)m+MumberaYeaisinu b) What is the present value of $150,000 to be received at the end of 20 years, given a 5% discount rate? [05 Marks] c) Under Rule of 72, it determine the number of years it will take to double the value of your investment. If you are able to generate an annual return of 9%, how many numbers of years it would be taken to double the value of investment? [05 Marks] d) At what rate will $100,000 have to grow to reach $800,000 in 25 years? [05 Marks]
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