Homework Answers
1. The amount that she should deposit is computed as follows:
Present value = Future value / ( 1 + r )n
= AED 900,000 / ( 1 + 0.09 )4
= AED 637,582.69
2. Future value is computed by using the below formula:
Future value = Present value ( 1 + r )n
= AED 85,000 ( 1 + 0.10 )7
= AED 165,640.95 Approximately
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