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Assuming an interest rate of 5 % per year over a period of 5 years on the money put in the bank, how much will

Assuming an interest rate of 5% per year over a period of 5 years on the money
put in the bank, how much will A-Design have in its bank account at the end of the
first year? (1 point)
2. Assuming an interest rate of 5% per year over a period of 5 years on the money
put in the bank, calculate the simple interest and the compound interest earned by
A-Design at the end of the fifth year? (2 points)
3. Assuming an interest rate of 5% per year compounded every 6 months over a
period of 5 years on the money put in the bank, how much will A-Design have in its
bank account at the end of the fifth year? (1 point)
4. Assuming an interest rate of 5% per year compounded monthly over a period of 5
years on the money put in the bank, how much will A-Design have in its bank
account at the end of the fifth year? (1 point)
5. Compare the results of 2,3 and 4 and comment. (1.5 points)
6. Perform a discounted cash flow analysis and determine the best option offered by
Mr. Don to his clients, assuming a 10% per year compound interest rate. (3
points)
7. Calculate the straight-line depreciation cost per year of the machine.

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