Question

+Syo. व्यवहार Pupowstag O ly 70,oooX(1.3)^(n) = 15o, ou to 7o, .os = 2.14 150,000 F. Ali wants to have AED 70,000,000 in cash to buy a furnished apartment 5 years from today in JLT. She expects to earn 11 percent per year, compounded semiannually, on her secured investments. How much should she invest today to meet this purpose? onth

Answer 1

EAR = [(1 +stated rate/no. of compounding periods) ^no. of compounding periods - 1]* 100

? = ((1+11/(2*100))^2-1)*100

Effective Annual Rate% = 11.3025

Future value = present value*(1+ rate)^time

70000000 = Present value*(1+0.113025)^5

Present value = 40980140.56