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You invest $5,000 for 10 years in an account that pays the annual rate of 01. 12% (twelve per cent) with Monthly compounding. 1.1 Calculate

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You invest $5,000 for 10 years in an account that pays the annual rate of 01. 12% (twelve per cent) with Monthly compounding. 1.1 Calculate the amount of money in the account by the end of 5 years. An= P (1+R) Calculate the equivalent annual rate with semi annual compounding. = 5000 (1 + 12) = 8,811071 1.2 8811.715000 ( I + R 32 KO) 20 J 1-762342 2/1 + 2 2 R=00572 %5.75 1.3 Calculate the equivalent annual rate with continuous compounding. 8811.11= 5000er (10) 1.7 62 342 = er (10) In 1.762342= 1 r=.056 - 5.67%

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