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Don Smith invested $5,000 at 6% annual interest, and left the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, Don withdrew the accumulated amount of money.
(a) What amount did Don withdraw assuming the investment earns simple interest?
(b) What amount did Don withdraw assuming the investment earns interest compounded annually?
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Determine the amount of U.S dollars needed in 1 year if a forward hedge is used.
Problem 1: Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 120 boxes.
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