Calculate the amount of money that nikora will receive

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Question: 1. (Present value) What is the present value of the following future amounts?

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2. (Compound value) Nikora Ltd., based in Georgia, produces meat and milk products. The company sold old machinery for 100,000 Georgian Lari (GEL) and decided to put this amount in a term deposit, which usually pays 10 percent annually.

a. Calculate the amount of money that Nikora will receive after 2, 4, and 7 years of deposit.

b. Re-calculate results from part (a) if bank offers 10 percent annual compound interest on semi-annual basis.

c. What conclusion can you draw from the calculations you have completed in (a) and (b)?

Reference no: EM131488029

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