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majarm majarm
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6 years ago
Alia keeps his savings of $5000 in a current account at TD Bank for 3 years in order to avoid paying any banking fee. The rate of return for the current account is 0%. Mandated discount rate in Ontario is 2.5%. What is the worth of Alia's money in 3 years?
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Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
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6 years ago
Alia's money worth in 3 years    = $5,000 ×   ×   × 
   = $5,000 × 0.92686
   = $4,634.30
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