Q5
b and d are REALLY OBVIOUSLY wrong. You tell me why.
A little thought throws out 'a'. Think about the denominator.
That leave 'c', doesn't it?
help me by Choosing the Correct answer:
Question # 5
Suppose you make a saving of Rs. 50,000 at the end of each month, assume an interest of 7% compounded monthly, how much will you have accumulated at the end of 4 years?
a) 50000[(1 + 0.07)48 -1]/ (0.07)
b) 50000[(1 – (1 + 0.07)-4]/ 0.07
c)50000[(1 + 0.07/12)48 -1]/ (0.07/12)
d) 50000(1+0.07)4
Question # 6
If you want to withdraw Rs 45,000 at the end of each quarter for the next 6 years then what amount must you invest today at 6% compounded quarterly?
a) 45,000 [(1 - (1/ (1 + .06/4)24)) / (.06/4)]
b) 45,000(1 + .06/4)24)
c) 45,000 [(1 + ((1 + .06/4)24)) / (.06/4)]
d) 45,000 [(1 - (1/ (1 + .06)6)) / (.06)]
Thanks
Azhar