Suppose you have a saving account in Bank XYZ and you have deposited an amount of Rs.10,000 into your account on January 01, 2018. The rate of interest that bank pays on deposits is 8% per annum. Requirements: 1. If the interest rate compounds annually then how much amount will you have on January 01, 2024 in your account? 2. If the interest rate compounds semi-annually then how much amount will you have on January 01, 2024 in your account? 3. If the interest rate compounds quarterly then how much amount will you have on January 01, 2024 in your account? 4. Supporting the results of above three requirements; you are required to explain compounding and the effect of compounding frequency on future value of your investment. NOTE: It is required to show complete calculation along with formulas.
Suppose you have a saving account in Bank XYZ and you have deposited an amount of Rs.10,000 into your account on January 01,...