A company is planning to expand its business after 10 years. T planned expansion would require an investment of RO 15000. To ra this fund the company is planning to deposit RO 1000 in bank at the e of each year for the next 10 years. The bank gives an annual interest 7% on deposits, which will be compounded annually. Evaluate t decision and comment.
A company is planning to expand its business after 10 years. T planned expansion would require an investment of RO 15000. To ra this fund the company is planning to deposit RO 1000 in bank at the e of each year for the next 10 years. The bank gives an annual interest 7% on deposits, which will be compounded annually. Evaluate t decision and comment.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:A company is planning to expand its business after 10 years. The
planned expansion would require an investment of RO 15000. To raise
this fund the company is planning to deposit RO 1000 in bank at the end
of each year for the next 10 years. The bank gives an annual interest of
7% on deposits, which will be compounded annually. Evaluate this
decision and comment.
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