Nikora Ltd., based in Georgia, produces meat and milk products. The company sold old machinery for 100,000

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Nikora Ltd., based in Georgia, produces meat and milk products. The company sold old machinery for 100,000 Georgian Lari (GEL) and decided to put this amount in a term deposit, which usually pays 10 percent annually.

a. Calculate the amount of money that Nikora will receive after 2, 4, and 7 years of deposit.

b. Re-calculate results from part (a) if bank offers 10 percent annual compound interest on semi-annual basis.

c. What conclusion can you draw from the calculations you have completed in (a) and (b)?

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Foundations Of Finance

ISBN: 9781292155135

9th Global Edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Question Posted: Feb 21, 2024 05:01 AM

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Nikora Ltd., based in Georgia, produces meat and milk products. The company sold old machinery for 100,000

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a To calculate the amount of money that Nikora will receive after 2 4 and 7 years of deposit we can ...View the full answer

Foundations Of Finance

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