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Question 1 - Kelly wishes to accumulate $500,000 at the end of 15 years. To do this, Kelly needs to deposit an equal amount into the bank at the end of each year. If she can earn 6% compounded annually, how much do Kelly needs to deposit each year?
Question 2 - Given
Year
Amount
1
RM500
2
RM600
3
RM700
If all the above cash flows are received at the end of the year and these cash flows are deposited at 4 percent, calculate their combined future value at the end of year 3.
Question 3 - Calculate the future value of $1000 received today and deposited at 8 percent compounded semi-annually for three years.
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