Find the effective rate

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Reference no: EM132969336

Question 1

a) Find the future value of RM 7000 which was invested for 2 years 6 months at 5% compounded quarterly

b) A project, which requires an initial outlay of RM 110000, will produce the following inflows. Year 1 RM 20000 Year 2 RM 30000 Year 3 RM 40000 Year 4 RM 50000 Find the net present value of the project if the discount rate is 8% per annum. Should the project be given the green light? Explain

c) Find the effective rate which is equivalent to 9% compounded monthly.

Reference no: EM132969336

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