Question
It's URGENT Please Reply ASAP!!! Thank you. Time value of money means that a dollar received today is worth more than a dollar received in
It's URGENT
Please Reply ASAP!!! Thank you.
Time value of money means that a dollar received today is worth more than a dollar received in future. An understanding of time value of money is essential in financial management as it will enable company to understand how share and bonds are valued.
Jaqlyn intends to expand her business at Singapore. She assigns her staff to calculate how much she will earn based on future value and present value method before she decides to invest.
a) Jaqlyn plans to accumulate RM550,000 over a period of 12 years by making equal annual deposits in an account that pays an annual interest rate of 9% (assume all payments will occur at the beginning of each year). What amount she must her deposit each year to reach her goal?
(2.5 marks)
b) Jaqlyn plans to borrow RM350,000 now and repay it in 18 equal annual installments (payments will be made at the beginning of each year). If the annual interest rate is 14%, how much will her annual payments be?
(2.5 marks
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