Task 2

Part II

Ahmed wanted to invest his savings; he bought shares in a company, the company will offer an interest rate of 8% annually.

a.    How much money will be in the account in 4 years?

 

 

 

b.    After 4 years the shares were decreased by 20% each year, after how many years Ahmed will lose all of the profits?

1st year = 30967.99 (0.8) = 24781.5 

2nd year = 24781.59 (0.6) = 14868.95

3rd year = 14868.95  (0.4) = 5947.58

4th year = 5947.58 (0.2) = 1189.51

5th year = 1189.51 (0.0)  = Zero

He will lose all of his profits in 5 years.