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Question - Mark deposited X amount into an account that paid 8% compounded monthly. Five years later, he was sent overseas for two years. Prior to his departure, he had already made arrangements with his bank to pay his son £400 every month for two years. His account would be depleted when the final payment of £400 was made.
Required -
(a) What was the value of his account when he left the country?
(b) Find the value of X.
(c) Find the interest earned by the account just after he left the country.
(d) Find the effective rate that is equivalent to the nominal rate above.
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