(a) Jane placed $12,500 in an account that paid $13,137.50 at the end of one year...

  

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(a) Jane placed $12,500 in an account that paid $13,137.50 at the end of one year and five months. Determine the simple interest rate. [5 marks] (b) John borrowed $50,000 from a financial institution for 3.5 years at 4.2% p.a. compounded quarterly. What was the amount of interest that he paid? [5 marks] (c) James wishes to receive $5,000 one year from now, $2,000 three years from now, and another $3,000 four years from now. If the interest is compounded at 2.8% p.a., how much should he set aside today in order to achieve his goal? [5 marks] (a) Jane placed $12,500 in an account that paid $13,137.50 at the end of one year and five months. Determine the simple interest rate. [5 marks] (b) John borrowed $50,000 from a financial institution for 3.5 years at 4.2% p.a. compounded quarterly. What was the amount of interest that he paid? [5 marks] (c) James wishes to receive $5,000 one year from now, $2,000 three years from now, and another $3,000 four years from now. If the interest is compounded at 2.8% p.a., how much should he set aside today in order to achieve his goal? [5 marks]

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