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  3. 2a your company needs s5 million in 5 years for...

Question: 2a your company needs s5 million in 5 years for...

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2(a) Your company needs S5 million in 5 years for buying new equipment. The company has $3.5 million that can be invested with the hope that it will result in the required sum after 5 years. Two banks have made the following proposals: Bank A: 8% per year interest, compounded yearly. Bank B: 1.8% interest per quarter (ie. quarterly compounded). Will the company receive the required funds? Which offer is better?

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