a. Differentiate among basic patterns of cash flow with example? How simple interest differs from...
70.2K
Verified Solution
Link Copied!
Question
Finance
a. Differentiate among basic patterns of cash flow with example? How simple interest differs from compound interest? How ordinary annuity differs from annuity due? Which always has greater future value and present value for identical annuities and interest rates? Why? 5 b. X wishes to accumulate BDT 500000 by the end of 4 years by making equal annual end to year deposits over the next 4 years. If X can earn 8% on her investment, how much must he deposit at the end of each year to meet this goal? 2.5 c. If X deposits total BDT 10000 in a bank equally under two deposit schemes for 4 years at 8% interest compounded semiannually and compounded quarterly. What will be the amount of total deposit at the end of 4 years for each scheme? Which scheme will be more profitable for the depositor?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
