Question: 2. a. Differentiate among basic patterns of cash flow with example? How simple 5 interest differs from compound interest? How ordinary annuity differs from annuity

2. a. Differentiate among basic patterns of cash flow with example?

2. a. Differentiate among basic patterns of cash flow with example? How simple 5 interest differs from compound interest? How ordinary annuity differs from annuity due? Which always has greater future value and present value for identical annuities and interest rates? Why? b. X wishes to accumulate BDT 500000 by the end of 4 years by making equal 2 annual end to year deposits over the next 4 years. If X can earn 8% on her investment, how much must he deposit at the end of each year to meet this goal? c. If X deposits total BDT 10000 in a bank equally under two deposit schemes for 4 2 years at 8% interest compounded semiannually and compounded quarterly. What will be the amount of total deposit at the end of 4 years for each scheme? Which scheme will be more profitable for the depositor

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