Homework Answers
a. The amount is computed as shown below:
Future value = Present value x (1 + r)n
= $ 47 x 1.056
= $ 49.63
b. The amount is computed as shown below:
Present value = Future value / (1 + r)n
= $ 50 / 1.056
= $ 47.35
c. We shall deposit it in the bank.
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