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Date: 23/02/2019 Tasa (8%) lfyou deposit S20,000 in a bank account that pays 12% interest annually, how much wil be in your account after 6 years? ask2 (12%) Assume that 1 year from now you plan to deposit S2,000 in a savings account that pays a nominal rate 1. If the bank compounds interest annually, how much will you have in your account 5 years from now? 2. What would your balance be 5 years from now if the bank used quarterly compounding 3. Suppose you deposited $2,000 in 4 payments of $s00 each at the end of years 1, 2,3, 4. How much rather than annual compounding? would you have in your account at the end of year 4, based on same 13% annual compounding? (16%) Assume that you will receive $3,000 a year in Years 1 through 3, $4,000 an year in Years 4 through 6, and $5,000 an year in Years 7 through 9, with all cash flows to be received at the end of the year. If you require a 16 percent rate of return, what is the present value of these cash flows? 1. $15,674 2. $17,102 3. $19,382 4. $21,118 5. $23,427 Your uncle has agreed to deposit SS,000 in your banking account at the beginning of each of the men was (t-0, ts], t#2, t 3, t-4). You estimate that you can earn 12 percent a year on your account. How much will you have in your account 4 years from now (at te4)? (assume that no money is withdrawn from the account unti te4). (16%) 1. $23,826 2 $26,813 3. $29,764 4. $33,117 5. $35,746

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