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Question - Peter has invested hi annual bonus in a one year fixed deposit at Alpha Bank which offers a nominal interest rate of 12% per annum compounded bi-annually.
However, at a braai over the weekend, Frans his friend has pointed out that he should have rather invested at the same bank he is a client of, namely Beta Bank, because even though the nominal interest rate is half a percent less than Alpha Bank, the interest is compounded quarterly, and he will therefore get a greater return that Peter.
Required - Discuss whether Peter's advice was correct. Provide calculations to support the answer.
Given the current state of energy use, which continues to grow exponentially in such countries as China and India, what measures can the United States and other Western countries take to produce more fuel-efficient and environmentally-friendly fue..
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