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Company Y wants to deposit money in a bank account in order to be able to...

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Finance

Company Y wants to deposit money in a bank account in order tobe able to withdraw €50,000 after the first three years, and€60,000 after additional two years. The bank offers 6% annualinterest rate for the first three years and 8% interest for thefollowing years. What amount should Y deposit now?

Answer & Explanation Solved by verified expert
3.9 Ratings (531 Votes)
Money needs to be withdraw after 3 years 50000 Money needs to be withdraw after 2 additional years 60000 Annual interest rate for initial 3 years 6 Annual interest rate for After 3 years 8 Assume the interest is compounded Compound Interest    See Answer
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