a) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn8.5% interest per year. How much will you have at the end of 10 years?

b) You have Rs.25, 000 which you deposited in a bank account, bank promised to pay

you back Rs.75, 000 after 8 years. What rate offered by bank?

c) You borrowed Rs.500, 000 at 18% for five years.

Part a) How much you will pay each year to settle this loan?

Part b) If you decided to settle this loan after two years, what additional amount you will

pay at the end of two years to fully payback this loan while bank is not imposing

any fine on you?