# Yasser has two options for depositing QR75,000 for 3 years with two banks. The first choice is a time deposit

## Question:

Yasser has two options for depositing QR75,000 for 3 years with two banks. The first choice is a time deposit account in CBQ by compound annual interest rate is 1.25% credited on account monthly. The second choice is a time deposit account in QIB by compound annual interest rate is 3.25% credited on account every three time every year.

Which option is the best for Yasser? Why?

Jaber has three options for depositing QR38,000 for 4 years with two banks. The first choice is in IBQ by compound annual interest rate 3.75% credited on account 4 times every year. The second choice is in QIB by compound annual interest rate 4.5% credited on account 3 times every year. The third choice is in QNB by compound annual interest rate 5% credited on account every six months.

Which option is the best for Jaber? Why?

Turki opened a time deposit account in QIB. He deposited QR185,000. The compound annual interest rate is 2.75% yearly credited on account 2 time every year. Calculate the balance and interest value for 4 months.

**Related Book For**

## Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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