Question: please help do two question urgent Question 5 Consider the following annual cash flows: 0 1 2 3 -I--- -I--- -I--- 20k 20k 25k 30k
Question 5 Consider the following annual cash flows: 0 1 2 3 -I--- -I--- -I--- 20k 20k 25k 30k Using a 8% interest rate, calculate a) Total future value. (5 marks) b) Total present value. (5 marks) Question 6 You come across two banks offering different compounding interest rates. Public Bank offers 12 percent compounded semi-annually while Maybank offers 11.8 percent compounded monthly. Which bank should you deposit in? Show all relevant workings. 20k 4 - 5 ---I
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