AAA Associates is also considering an investment | My Assignment Tutor

QUESTION NO. 2(10 MARKS)AAA Associates is also considering an investment in 2025 for which it will need an investment of 12000 S. Considering it is Jan, 01 2021, a) how much should AAA deposit on Jan, 01 2022 to have an amount equivalent to 12000 $ at end of 2025. Their bank is offering to compound interest rate at 12% annual rate. b) Incase AAA decides to make equal payments from Jan 01 2022 to Jan 01 2025, how large the payments should be to accumulate 12000 $ by 2025? c) AAA is also considering the option to either opt for the equal payments as calculated in part b or use a lumpsum amount of $ 1550 on Jan 01, 2022, which option you think is more feasible? d) In case you opt for the lumpsum payment, on Jan 01, 2022, what interest rate, compounded annually, would AAA earn to have the required amount of 12000 $ on Jan 01, 2025.

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