Question
One of your ancestors made sure you would live a good life. He invested AED 10000 at 5% interest in a fund for your 100
One of your ancestors made sure you would live a good life. He invested AED 10000 at 5% interest in a fund for your 100 years ago. (a) How much would the investment be worth today? Clearly show your workings. [10 marks] (b) What is the effect of compounding? Demonstrate clearly the interest on interest earned. [10 marks] (c) Would you invest the amount you obtained in part (a) in a UAE villa in Jumeirah, based on the economic climate today? Explain your answer. [10 marks]
One of your ancestors made sure you would live a good life. He invested AED 10000 at 5% interest in a fund for your 100 years ago.
(a) How much would the investment be worth today? Clearly show your workings. [10 marks]
(b) What is the effect of compounding? Demonstrate clearly the interest on interest earned. [10 marks]
(c) Would you invest the amount you obtained in part (a) in a UAE villa in Jumeirah, based on the economic climate today? Explain your answer. [10 marks]
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Calculating the Future Value of the Investment a Future Value Heres how we can calculate the future value of the investment Formula Future Value Prese...
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Financial Accounting Information For Decisions
Authors: Robert w Ingram, Thomas L Albright
6th Edition
9780324313413, 324672705, 324313411, 978-0324672701
