IBF

Q17. Assume that today you deposit Rs. 6,000 in a savings account that pays 8.5%. a. If the bank compounds interest annually, how much will you have in the savings account after 5 years? (1 mark) b. What will be the balance in the savings account after 5 years if the bank used quarterly compounding rather than annual compounding? (1 mark) c. What will be the balance in the savings account after 5 years if the bank used monthly compounding rather than annual compounding? (1 mark) d. Suppose you deposited the Rs. 6,000 in six payments of Rs.1000 each in years 1 to 6. How much would you have in your account at the end of year 5, if the annual interest rate is 8.5% (1 mark) future