Q6. You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.) At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b.) How much difference would it make if the payments were made at the beginning of the month rather than at the end? Answer: a.) F = P6,464.67, b.) F value difference = P196.63 please show clear solution, the answer has already been given. (although if its wrong please write the answer and solution anyway)
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Q6. You plan to deposit P100 into a savings account at the end of each month for the next 5 years.
a.) At 3% compounded monthly, how much will you have accumulated at the end of 5 years?
b.) How much difference would it make if the payments were made at the beginning of the month
rather than at the end?
Answer: a.) F = P6,464.67, b.) F value difference = P196.63
please show clear solution, the answer has already been given. (although if its wrong please write the answer and solution anyway)
Step by step
Solved in 5 steps
