Question: You hold $2,000 as a customer deposit, but the customer wants to make sure he does not loose on the opportunity cost of those dollars.
You hold $2,000 as a customer deposit, but the customer wants to make sure he does not loose on the opportunity cost of those dollars. You agree to pay the customer 10% interest during the holding period. At the end of 3 years you need to return the deposit and the interest to the customer. How much will you have to give the customer in 3 years?
Step by Step Solution
★★★★★
3.47 Rating (154 Votes )
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Computation of the future value Compound Interes... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Document Format (1 attachment)
1365-B-C-A-A-R(724).docx
120 KBs Word File
