Q.3 Time value of Money (30 marks) A-(15 marks) Sara Placed 1000 BD in a bank for 3 years, the bank pays 12% interest on its deposits. Calculate the amount to which Sara's deposit will grow at the end of year 3 if interest is compounding: a) Annually. 3 marks b) Semi-annually. 4 marks c) Quarterly. 4 marks d) Monthly. 4 mark B- (15 marks). 1 Your father promised to place in your bank account 800 BD end of each year for the next 4 years, to be your graduation present. Calculate how much you will have in your bank account at the end of year 4, if the bank pays 8% interest on its deposits. (10 marks) 2. Would you prefer if your father places the 800BD in your account beginning of each year rather than end of each year and why? Show your calculation on which you base your decision