a) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% interest per year. How much will you have at the end of 10 years? b) You have Rs.25, 000 which you deposited in a bank account, bank promised to pay youback Rs.75, 000 after 8 years. What rate offered by bank? c) You borrowed Rs.500, 000 at 18% for five years. Part a) How much you will pay each year to settle this loan? Part b) If you decided to settle this loan after two years, what additional amount you will payat the end of two years to fully payback this loan while bank is not imposing any fineon you?
a) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% interest per year. How much will you have at the end of 10 years? b) You have Rs.25, 000 which you deposited in a bank account, bank promised to pay youback Rs.75, 000 after 8 years. What rate offered by bank? c) You borrowed Rs.500, 000 at 18% for five years. Part a) How much you will pay each year to settle this loan? Part b) If you decided to settle this loan after two years, what additional amount you will payat the end of two years to fully payback this loan while bank is not imposing any fineon you?
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
Problem 1PS
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- a) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn
8.5% interest per year. How much will you have at the end of 10 years?
- b) You have Rs.25, 000 which you deposited in a bank account, bank promised to pay
youback Rs.75, 000 after 8 years. What rate offered by bank?
- c) You borrowed Rs.500, 000 at 18% for five years.
Part a) How much you will pay each year to settle this loan?
Part b) If you decided to settle this loan after two years, what additional amount you will
payat the end of two years to fully payback this loan while bank is not imposing
any fineon you?
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