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(c) If a person deposits $500 into an account every 3 months at an interest rate of 6% per year, compounded continuously

Posted: Fri Jul 01, 2022 8:13 am
by answerhappygod
C If A Person Deposits 500 Into An Account Every 3 Months At An Interest Rate Of 6 Per Year Compounded Continuously 1
C If A Person Deposits 500 Into An Account Every 3 Months At An Interest Rate Of 6 Per Year Compounded Continuously 1 (259.25 KiB) Viewed 42 times
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(c) If a person deposits $500 into an account every 3 months at an interest rate of 6% per year, compounded continuously, how much will be in the account at the end of 5 years? [5 Marks] (d) Wakalinga Company is developing new patent for product. A venture capital firm gives the company $25,000,000 initially and $55,000,000 more at the end of the first year. The product patent will be sold at the end of year 5 to the highest bidder and Wakalinga Company will receive $80,000 000. The venture capital firm will receive everything in excess of $80,000,000. The firm invest unused money (positive cash flows) in short term commercial paper earning 10% effective rate per year through its bank. In the meantime, Wakalinga Company incurs development expenses of $50,000,000 for the first three years. The product is to be evaluated by Tanzania Revenue Authority and there will be neither expenses nor revenues during the fourth year. What is Wakalinga Company's rate of return on this investment? [10 Marks] MARKS!