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Question 2 After completing successfully your FIN203 course, you have been asked by many of your family and friends about financial matters. You are trying
Question 2 After completing successfully your FIN203 course, you have been asked by many of your family and friends about financial matters. You are trying your best to advise them. (a) Your grandmother has been asked to invest in a product that offers to double her money in 3 years. Indicate the annual rate of return she is being offered. (4 marks) (b) Your parents have $5,000.00 to deposit. Alpha Bank offers 2 percent per year compounded monthly. Bravo Bank offers 2 percent compounded annually. Compute the amount of deposit after being kept 10 years at each bank. Explain the difference between the two (2) future values. (6 marks)
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