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What is its future value at the end of four years

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1. (a) If you deposit $1,200 in the bank today, what is its future value at the end of four years if it is invested in an account paying 7.5% annual interest, assuming annual compounding?

(b) What is the present value of $1,200 to be received in four years if the appropriate interest rate is 7.5% (annual compounding)?

Reference no: EM132523512

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