this question concerns Financial Management, please answer and show the step-by-step equation/process

Finance Dec 27, 2020

this question concerns Financial Management, please answer and show the step-by-step equation/process.

Question: Make a comparison between any two local banks interest rates on savings account and maintaining balances. Provide an example computation.

Expert Solution

ANSWER

banks chosen

1.HDFC BANK - 3% (compounded Quarterly)

2. SBI -2.7% (compounded quartetly)

SUPPOSE

DEPOSITED AMOUNT = 10,000

TIME PERIOD 10 YEAR

COMPUTE FUTURE VALUE

	HDFC	SBI
AMOUNT	10000	10000
TIME PERIOD	5 YEARS	5 YEARS
RATE	3.00%	2.70%
AMOUNT AT THE END OF YEAR
1	10,303.39	10,272.75
2	10,615.99	10,552.93
3	10,938.07	10,840.76
4	11,269.92	11,136.44
5	11,611.84	11,440.18

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