Answer:
Total FV= $678.615.02
Explanation:
<u>First, we need to calculate the value of the annuity at the end of the last payment:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,000*[(1.06^30) - 1]} / 0.06
FV= $158,116.37
<u>Now, the total future value after 25 years:</u>
FV= PV*(1 + i)^n
FV= 158,116.37*(1.06^25)
FV= $678.615.02
Answer:
So interest payment will be $8000
Explanation:
We have given face value of the bond = $100000
And bond is issued for $93500
Standard rate of interest = 8 %
And market rate of interest = 10 %
We have to find the interest paid
Interest payment will be given by
Interest payment = face value of bond × standard rate of interest
= $100000×0.08 = $8000
So interest payment will be $8000
Bank interest is when you leave money in the bank for saving purposes. Then the money stays in the bank and you get money for keeping your money in the bank.