QUESTION 2 a) Izzati Syuhada invested RM15,000 in an investment scheme for 12 years. The investment rate offered was 4.5% compounded quarterly for the first seven years and 6% compounded every two months for the rest of the periods. Find the future value of the investment. b) Five years ago, Lian saved RM X into an account that offered an interest rate of 4.38% compounded monthly. Find the value of X if now the total amount in her account is RM2,426.45.

QUESTION 2 a) Izzati Syuhada invested RM15,000 in an investment scheme for 12 years. The investment rate offered was 4.5% compounded quarterly for the first seven years and 6% compounded every two months for the rest of the periods. Find the future value of the investment. b) Five years ago, Lian saved RM X into an account that offered an interest rate of 4.38% compounded monthly. Find the value of X if now the total amount in her account is RM2,426.45.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 18E

See similar textbooks

Similar questions

You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.
Q9. If an amount of $14,000 is deposited into a savings account at an annual interest rate of 5%, compounded quarterly, find the value of the investment after 5 years. Q10. If an amount of $8,000 is deposited into a savings account at an annual interest rate of 7%, compounded semi-annually, find the value of the investment after 5 years. Q11. Find the principal that will amount to $8,000 in 4 years at 6% p.a. compounded monthly. Q12. Find the principal that will amount to $6,000 in 3 years at 8% p.a. compounded quarterly.
i) Reno Ltd invests £150,000 at 2.5% compound interest for three years. What will be thevalue of the investment after three years?
a) Mr. Jackson invested $15000 into an account for 8 years at 3.8% interest compounded quarterly. Inflation over that time was 2% averaged per year. What is the value of his investment after 8 years? b) Find the real value of the investment by taking into account inflation over that time. Show work.