Fatma is quoted a nominal interest rate of 9.15% per annum compounded every four months on her investment of $1,200, the effective rate per annum is:

Q6. Construct a cash flow diagram to find the equivalent present worth of a future outflow of $50,000 in year 5 at an interest rate of 5% per year 79

For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. Company C wants to start saving money for replacement of network servers. If the company invests $100,000 at the end of year 1 but decreases the amount invested by 5% each year, how much will be available 5 years from now at an earning rate of 10% per year?