a) A man has invested $5350 in a savings account that pays 12% simple interest. How long will it be, in years, until the investment amount to Tk.10165? b) How much will a deposit of 5000 taka grow to in 20 years at 6% interest compounded continuously? c) A sum of money invested now at 10 percent compounded quarterly is to provide payments of $ 1000 every 3 months for 12 years, the first payment due 3 months from now. How much should be invested? How much interest will the investment earn?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
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a) A man has invested $5350 in a savings account that pays 12% simple interest. How long will

it be, in years, until the investment amount to Tk.10165?

b) How much will a deposit of 5000 taka grow to in 20 years at 6% interest compounded

continuously?

c) A sum of money invested now at 10 percent compounded quarterly is to provide payments of

$ 1000 every 3 months for 12 years, the first payment due 3 months from now. How much

should be invested? How much interest will the investment earn? 

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