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Find the amount to which $500 will grow under each of the following conditions:
a. 12 percent compounded annually for 5 years.
b. 12 percent compounded semiannually for 5 years.
c. 12 percent compounded quarterly for 5 years.
d. 12 percent compounded monthly for 5 years.
Calculate the firm's quantities supplied in the two markets, prices charged and profits at real exchange rates (RS domestic per foreign currency) of 2 and 2.5.
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