How much must deposit at the end of each six months

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Problem 1: Calculate the present value of RM 1,000 to be received at the end of 8 years. Assume an interest rate of 7 percent.

Problem 2: How much would you be willing to pay today for an investment that would return RM 800 each year at the end of each of the next 6 years? Assume a discount rate of 5 percent.

Problem 3: If you would like to accumulate RM 7,500 over the next 5 years, how much you must deposit at the end of each six months, starting six months from now, given a 6 percent interest rate and semi-annual compounding?

Reference no: EM132882897

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