Financial bank interest rate question

timer Asked: Mar 12th, 2016

Question description

Hi All, struggling a bit with the question below, hope someone can assist.

Mrs Smith is expecting the following amounts in the future:

30 000 after 3 years

38 000 after 4 years

45 000 after 5 years

Her bank has offered to settle her today to cut her long wait. How much must she be prepared to get today if the bank's interest rate is 10% per annum.

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