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Submitted To:
Helaluddin Ahmed
Sr. Lecutrer
Department of BBA
World University of Bangladesh

Submitted By:
Nur Uddin
Program: BBA in Tourism & Hospitality Management
Roll :194
Batch : 14th
Id No: 15/18/14/194
Date: 20/07/2021
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Answer #1
(a)

FV = PV * (1 + r%)n

$6000 = PV * (1 + 12%)6

$6000 = PV * (1 + 0.12)6

$6000 = PV * (1.12)6

$6000 = PV * 1.97382268518

PV = $6000 / 1.97382268518

PV = $3039.79

(b)

FV = PV * (1 + r%)n.

PV = $3039.79 because values are same in question answer a.

(c)

FV = PV * (1 + r%)n

Since the values are same as in previous question, so the answer will also be
same.

PV = $3039.79
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#Answer 2

a) Accumulated amount for end of 3 years ,

= 1500 * (1 + 7%) 3
= 1500 * (1 + 0.07) 3
= 1500 * (1.07) 3
= 1500 * 1.225043
= 1837.5645
=$1837.56
Accumulated amount for end of 6 years,
= 1500 * (1 + 7%) 6
= 1500 * (1 + 0.07) 6
= 1500 * (1.07) 6
= 1500 * 1.50073035
= 2251.09553
=$2251.10
Accumulated amount for end of 9 years,
= 1500 * (1 + 7%) 9
= 1500 * (1 + 0.07) 9
= 1500 * (1.07) 9
= 1500 * 1.83845921
= 2757.68882
=$2757.69

b) 1. Interest earned = 1837.56 – 1500 = 337.56

2. Interest earned = 2251.10 – 1500 = 413.54

3. Interest earned = 2757.69 – 1500 = 506.59