A-How many years 1022 SAR to grow to 1,369.58 SAR if invested at 5 percent compounded annually.?
Question:
A-How many years 1022 SAR to grow to 1,369.58 SAR if invested at 5 percent compounded annually.?
B-Assume that you plan to buy a vehicle in 5 years and you need to save for a down payment You plan to save 500 SAR per year (with the first deposit made immediately), and you will deposit the funds in a bank account that pays 2% interest. How much will you have after 5 years? How much will you have if you make the deposits at the end of each year?
C-1 Suppose a U.S. government bond promises to pay 2,249.73 SAR four years from now. If the going interest rate on 4-year government bonds is 3%, how much is the bond worth today?
2-How would your answer change if the bond matured in 5 years rather than 4 years?
3-What if the interest rate on the 5-year bond was 6% rather than 3%?
Expert Answer:
Using Time value of money principles and formula we can solve for the questions below A To compute t... View the full answer
