Chapter 5

1. Sameer will receive the following payments at the end of the next three years: AED 90,000, AED 80,000, and AED 95,000. Then from the end of the thrid year through the end of the tenth year, he will receive an annuity of AED 100,000. At a discount rate of 8 percent, what is the present value of all future benefits?

2.Find the future value of AED 10,000 at 8 percent compounded quarterly for 10 years.

3.Fatema would like to know the monthly payments and the total finance charges on the following 2 loans:

i. AED 500,000, 9%, 36 months

ii. ADE 500,000, 9%, 48 months

4. Hassan has borrowed AED 3,000,000 from Dubai Commercial Bank The annual interest rate on this loan is 5 percent and the loan is to be repaid over five years with equal payments at the end of each year. What will be the total interest payments over the five years?