Calculate the following values assuming a discount rate of 12 percent: (a) 500 compounded for five years;

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Calculate the following values assuming a discount rate of 12 percent:

(a) £500 compounded for five years; 

(b) The present value of £500 received in five years’ time; 

(c) The present value of £500 received each year forever;

(d) The present value of £500 to be received each year for the next five years.

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