Part – A: Marks [3] A person wants to deposit $30,000 per year for 15 years. If interest is earned at the rate of 16% per year, compute the amount to which the deposit will grow by the end of 15 years if; a) Deposits of $30,000 are made at the end of each year with interest compounded annually. b) Deposits of $15,000 are made at the end of each 6 month period with interest compounded semiannually. c) Deposits of $2,000 are made at the end of every month with interest compounded monthly. Part – B: Marks [2] A major shipping company is planning to purchase new cargo ships. It wants to borrow $1100 million by issuing bonds. The bonds are for a 15-year period with at a rate of 9 percent per year compounded quarterly. Interest is to be paid each quarter to bondholders. How much will the company have to pay in quarterly interest? How much interest will it pay over the 12-year period? Part – C: Marks [2] Determine the present value of a series of 30 quarterly payments of $3,500 each which begins one month from today. Assume interest of 8.25 percent per year compounded monthly.
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omg. really. it's too long...
sorry,,
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