1. a. At the end of ten years how much is an initial Tk. 20,000 deposit...

 

Transcribed Image Text:

1. a. At the end of ten years how much is an initial Tk. 20,000 deposit followed by five each year-end annual Tk. 5,000 payments worth at the compound interest rate of (6+ last digit of your ID) % percent? b. Suppose that an investment promises to pay a nominal (6+last digit of your ID) % annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded quarterly? C. Assume that you have opened a savings account today by depositing Tk. 100,000. The savings account pays (4+last digit of your ID) % percent compound annual interest and this rate is assumed to remain in effect for all future periods. Five years from today you will withdraw one amount of money. You will continue to make additional annual withdrawals of same amount for a while longer making your last withdrawal at the end of year ten. How large the amount of each withdrawal so that you will have a zero balance after your final withdrawal made at the end of year ten? [05] [2.5] [05] 1. a. At the end of ten years how much is an initial Tk. 20,000 deposit followed by five each year-end annual Tk. 5,000 payments worth at the compound interest rate of (6+ last digit of your ID) % percent? b. Suppose that an investment promises to pay a nominal (6+last digit of your ID) % annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded quarterly? C. Assume that you have opened a savings account today by depositing Tk. 100,000. The savings account pays (4+last digit of your ID) % percent compound annual interest and this rate is assumed to remain in effect for all future periods. Five years from today you will withdraw one amount of money. You will continue to make additional annual withdrawals of same amount for a while longer making your last withdrawal at the end of year ten. How large the amount of each withdrawal so that you will have a zero balance after your final withdrawal made at the end of year ten? [05] [2.5] [05]

Answer rating: 100% (QA)

1 a At the end of ten years the initial Tk 20000 deposit followed by five each yearend annual Tk 5000 payments is worth Given information Initial depo... View the full answer