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A finance company advertises that it will pay a lump sum of Rs. 10,000 at the end of 6 years to investors who deposit annually Rs. 1,000. What interest rate is implicit in this offer?
Someone promises to give you Rs. 5,000 after 10 years in exchange for Rs. 1,000 today. What interest rate is implicit in this offer?
Find the present value of Rs. 10,000 receivable after 8 years if the rate of discount is
(i) 10 percent, (ii) 12 percent, and (iii) 15 percent.
What is the present value of a 5-year annuity of Rs. 2,000 at 10 percent
At the time of his retirement, Mr.Jingo is given a choice between two alternatives:
(a) an annual pension of Rs. 10,000 as long as he lives, and
(b) a lump sum amount of Rs. 50,000. If Mr.Jingo expects to live for 15 years and the interest rate is 15 percent, which option appears more attractive?
Mr.X deposits Rs. 1,00,000 in a bank which pays 10 percent interest. How much can he withdraw annually for a period of 30 years. Assume that at the end of 30 years the amount deposited will whittle down to zero.