Interest rate compounded annually problem

Reference no: EM13142637

Q1. You want to buy a new car 5 years from now for N$300 000. Assuming a 6% interest rate compounded annually, how much should you invest today to yield N$300,000 in 5 years?

Q2. You find another financial institution that offers an interests rate of 6% compounded quarterly. How much less can you deposit today to yield N$300,000 in five years?

Reference no: EM13142637

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Interest rate compounded annually problem : You want to buy a new car 5 years from now for N$300 000. Assuming a 6% interest rate compounded annually, how much should you invest today to yield N$300,000 in 5 years?

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