Question 1(a) Clearly distinguish between nominal interest rate and effective interest rate.(b) Akomiah deposits GHS1,000 into his bank account. The bank credits interest atnominal annual rate j, convertible semi-annually, for the first seven years and nominalannual rate 2j, convertible quarterly, for all years thereafter. The accumulated value ofthe account at the end of 5 years is 2X. If the accumulated value of the account at theend of 10.5 years is GHS1,980, find the value of X.

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Question 1 (a) Clearly distinguish between nominal interest rate and effective interest rate.

SWFT Individual Income Taxes

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Chapter4: Gross Income: Concepts And Inclusions

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