2. Suppose that someone deposits BD2,500 in a savings account at the end of each year...

Question

Question

Answer 1

Answer #1

ANSWER:

A) When i is 8%

fv = yearly payment(f/a,i,n) = 2,500(f/a,8%,15) = 2,500 * 27.1521 = 67,880.28

so at the end of 15th year it will have bd 67,880.28

B) When i is 6.75%

fv = yearly payment(f/a,i,n) = 2,500(f/a,6.75%,15) = 2,500 * 24.6504 = 61,626

so at the end of 15th year it will have bd 61,626

Answer 2

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