Mr.Sarwar wants to save $2000 after every 6 months in a financial institution, which pays him interest at a rate of 10% per year compounded semi annually and deposits 16 semi annual payments. After 8 years Mr. Sarwar gives loan to Mr. Athar that accumulated amount(which he receives from the bank after 8 year) at an interest rate of 10% compounded annually. What amount Mr. Sarwar will have finally when Mr. Athar returns the amount to him after 3 years? How much total interest should he earn in 11 years time?
Mr.Sarwar wants to save $2000 after every 6 months in a financial institution, which pays him interest at a rate of 10% per year compounded semi annually and deposits 16 semi annual payments. After 8 years Mr. Sarwar gives loan to Mr. Athar that accumulated amount(which he receives from the bank after 8 year) at an interest rate of 10% compounded annually. What amount Mr. Sarwar will have finally when Mr. Athar returns the amount to him after 3 years? How much total interest should he earn in 11 years time?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.18E
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Mr.Sarwar wants to save $2000 after every 6 months in a financial institution, which pays him interest at a rate of 10% per year compounded semi annually and deposits 16 semi annual payments. After 8 years Mr. Sarwar gives loan to Mr. Athar that accumulated amount(which he receives from the bank after 8 year) at an interest rate of 10% compounded annually. What amount Mr. Sarwar will have finally when Mr. Athar returns the amount to him after 3 years? How much total interest should he earn in 11 years time?
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