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What is the peale AED 13 S annually for 7 years marks) 4. If you wish to accumulate AED 350,000 in 11 years, how much must yo
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Answer #1

4. FV= AED 350,000

n= 11 years

r= 12%

Since it is compounded quarterly,

n = 11 x 4 =44

r = 12 / 4 = 3%

Future value = Present value(1 + r)n

350000 = PV (1.03)44

PV = AED 95,330

5. Future value = Present value(1 + r)n

Here, FV= AED 400,000

PV= AED 250,060

r = 7%

400,000 = 250060 (1.07)n

Number of years= 6.94 = 7 years

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