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QI. KNOWLEDGE AND UNDERSTANDING DRAWING CASH FLOW DIAGRAM ( 10 marks x 3 = 30marks) Draw the cash ow diagram for the following : 1.
QI. KNOWLEDGE AND UNDERSTANDING DRAWING CASH FLOW DIAGRAM ( 10 marks x 3 = 30marks) Draw the cash ow diagram for the following : 1. Assume that you want to deposit an amount (BD120,|000.00) into an account three years from now in order to be able to withdraw BD750 per year for ten years starting four years from now. Assume that the interest rate is 4.5% per year. Construct the cash ow diagram. 2. Suppose that you want to make a deposit into your account now such that you can withdraw an equal amount (A1) of BD300 per year for the rst ve years starting one year after your deposit and a different annual amount (A2) of BDGOO per year for the following three years. With an interest rate (1) of 5.5% per year. construct the cash ow diagram. 3. If you deposit BD1,500 now, BD3,600 three years, BD2000 seven years, and BD1,800 nine years from now in a savings account that pays 10% interest. how much would you have at the end of year 25? Construct the cash ow diagram
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