You want to lend $3,000 as a bank deposit in a private bank with an interest rate 3.5% compounded MONTHLY (i.e. 3.5% per month). You plan to withdraw principle and interest as a lump sum (in one payment) at the end of 3 MONTHS. What is the value of the total payment? What is the total interest paid to you? You plan to withdraw principle and interest as a lump sum (in one payment) at the end of TWO YEARS. What is the value of the total payment? What is the total interest paid to you?

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To calculate the value of the total payment and the total interest paid under different scenarios we ... View the full answer