Sadia Corporation, based in UAE, produces meat and milk products. The company sold old machinery for 50,000 UAE dirham and decided to put this amount in a term deposit, which usually pays 5 percent annually. A) Calculate the amount of money that Sadia Corporation will receive after 2, 4, and 7 years of deposit. B) Re-calculate results from part (a) if bank offers 5 percent annual compound interest on semi-annual basis. C) Re-calculate results from part (a) if bank offers 5 percent annual simple interest rate basis.
Sadia Corporation, based in UAE, produces meat and milk products. The company sold old machinery for 50,000 UAE dirham and decided to put this amount in a term deposit, which usually pays 5 percent annually. A) Calculate the amount of money that Sadia Corporation will receive after 2, 4, and 7 years of deposit. B) Re-calculate results from part (a) if bank offers 5 percent annual compound interest on semi-annual basis. C) Re-calculate results from part (a) if bank offers 5 percent annual simple interest rate basis.
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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Sadia Corporation, based in UAE, produces meat and milk products. The company sold old machinery for 50,000 UAE dirham and decided to put this amount in a term deposit, which usually pays 5 percent annually.
A) Calculate the amount of money that Sadia Corporation will receive after 2, 4, and 7 years of deposit.
B) Re-calculate results from part (a) if bank offers 5 percent annual
C) Re-calculate results from part (a) if bank offers 5 percent annual simple interest rate basis.
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