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16-01-2024
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A merchant deposited Birr 1000 in a savings account that earns 4% interest compounded half-yearly. Just after a year, the rate was changed to 8%. What amount will the merchant receive at the end of the second year in Birr?

a. Birr 1,160
b. Birr 1,166.40
c. Birr 1,187.92
d. Birr 1,200

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