Question
Q3.Solve the following; a. You have just made your first $6,000 contribution to your retirement account. Assuming you earn an 11 percent rate of return
Q3.Solve the following;
a. You have just made your first $6,000 contribution to your retirement account. Assuming you earn an 11 percent rate of return and make no additional contributions, what will your account be worth when you retire in 45 years?
b. As a fresh graduate, you are just started your professional life and at the same time saving for retirement. You are thinking to invest in a retirement scheme that requires PKR 25,000 contribution per year for 35 years. Retirement scheme guarantees a compounding return of 12 % per annum. If you deposit first contribution from year one, what would be in your account at maturity.
c. First National Bank charges 15.2 percent compounded monthly on its business loans. First United Bank charges 15.5 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan?
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