Question
a) An investment gives you $10,000 from years 1 through 4 and 40,000 in year 5. If the interest rate is 7.5%, what is the present worth of this investment?
(2 points)
b)You need $150,000 to buy a new car in 5 years’ time. How much should you save at the end of every quarter for 5 years if a quarterly savings scheme offers you a rate of 8% p.a.?
(2 points)
b)You need $150,000 to buy a new car in 5 years’ time. How much should you save at the end of every quarter for 5 years if a quarterly savings scheme offers you a rate of 8% p.a.?
Answers
Deboraj
1666.67