- 1 Marks
Question
Lokoson must pay a lump sum of N960,000 in 5 years. What amount deposited today at 5.8% compounded annually will make up the sum of money?
A. N724,200.36
B. N724,300.37
C. N725,200.36
D. N725,300.37
E. N725,300.37
Answer
A. N724,200.36
Explanation:
To calculate the present value, we use the formula for compound interest:
- Tags: Compound Interest, Lump Sum, Present Value, Time value of money
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: NOV 2020
- Uploader: Dotse