Assignment

1. A makes a deposit of Rs. 10,000 in a bank which pays 10% interest compounded annually for 6 years. You
are required to find out the amount to be received after 5 years. F1
2. A person is required to pay four equal annual payments of Rs. 10,000 each in his deposit account that pays
8% interest per year. Find out the future value of annuity at the end of 4 years. F2
3. Find out the present value of Rs. 4,000 received after in 10 years hence, if discount rate is 8%. F3
4. Find out the present value of a 4 year annuity of Rs. 10,000 discounted at 10 per cent. F4
5. If Rajesh wishes to withdraw Rs. 8,000 seven years from now and the interest rate is 12% compounded
annually, then how much amount he must deposit today? F1 & F3
6. If a person makes a series of Rs. 5,000 deposits at the end of each of the next 5 years and the interest rate
is 12% compounded annually, what will be the future value of these deposits. F2
7. A company anticipates capital expenditure of Rs. 50,000 for new equipment in 10 years. How much should
be deposited annually in a sinking fund earning 10% per year compounded annually to provide for the
purchase? F4
8. A man, aged 35 years intends to invest now at 7% per year compounded semiannually to receive Rs.50,000
at the age of 65 years. How much should be his present investment? Given that (1 + 0.35/2)60 = .126934.
F3 (REGULAR FORMULA)
9. An investment is made for 4 years at 7% compounded quarterly so as to have
a maturity value of Rs.6,000. What is the amount of investment? What is the
amount of interest? F2
10. A person is required to pay four equal annual payments of Rs. 5,000 each in his deposit account that pays
8% interest per year. Find out the future value of annuity at the end of 4 years. F2
11. A makes a deposit of Rs. 5,000 in a bank which pays 10% interest compounded annually for 6 years. You
are required to find out the amount to be received after 5 years. F1
12. Z plans to receive an annuity of Rs. 5,000 semi-annually for 10 years after he retires in 18 years. Money is
worth 9% compounded semi-annually. F4
(a) How much amount is required to finance the annuity? F4
(b) What amount of single deposit made now would provide the funds for the annuity? F3
(c) How much will Mr. Z receive from the annuity?

13. Y bought a TV costing Rs. 13,000 by making a down payment of Rs. 3,000 and agreeing to make equal
annual payment for 4 years. How much would be each payment if the interest on unpaid amount be 14%
compounded annually? F4
14. Rs. 5,000 is paid every year for 10 years to pay off a loan. What is the loan amount if interest rate be 14%
per annum compounded annually? F2

F1= FORMULA 1 FV=P (1+R)^n

F2= FORMULA 2 FV=A ((1+R)^n)-1)/R) OR FV=A8 (CVIAF n, r,)
F3= FORMULA 3 PV=FV*(1/(1+R)^n) OR PV=FV *(PVF n, r,)

Financial Management

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Assignment
F4=FORMULA 4 PV=A (1-(1/(1+R)^n)/R)

Financial Management

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