(c)Roland just put RM1,000 in the fixed deposit and intend to leave it there for10 years. If the bank pays him 16 percent semi-annually, compute the totalamount will Roland has at the end of year 10.(d)Shiro's grandfather has just announced that he's opened a saving account forShiro with a deposit of RM10,000. Moreover, he intends to make another ninesimilar deposit for the rest nine years at beginning of each year. If the savingsaccount pays 8 percent interest, determine the amount Shiro accumulated atthe beginning of 10 years.

Investment amount = RM 1,000 Annual interest rate = 16% Semi annual interest rate = 16%/2 = 8%…

Answered: Roland just put RM1,000 in the fixed…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 16PROB

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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.
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Roland just put RM1,000 in the fixed deposit and intend to leave it there for 10 years. If the bank pays him 16 percent semi-annually, compute the total amount will Roland has at the end of year 10. (c)