Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the client has made a deposit in the bank in the a

The client has made a deposit in the bank in the amount of PLN 10,000....

60.1K

Verified Solution

Question

Accounting

The client has made a deposit in the bank in the amount of PLN 10,000. The duration of the deposit is 3 years. The interest rate on the deposit is 8% with quarterly capitalization. a) Please calculate how much the customer has earned on this deposit? b) Please calculate the effective interest rate for this deposit? c) What was the real interest rate for this deposit if inflation was 2% per annum? d) If the customer would like to systematically save in an equal amount (instead of making a deposit at the beginning), how much he/she would have to pay into the deposit quarterly at the end of the quarter to have the same return on investment as in point a) - the interest rate is the same as in point a) . e) Would an investment in shares, for the same period, bought initially at 120PLN and then sold at 130PLN, bring a higher or lower profit rate than the above investment. Note the shares paid a dividend of PLN 6.80 annually at the end of each the year.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students