From the Desk of Dr.

Harjit Singh

Exercise

1. Calculation of Future Value (At Simple Interest)

If Rs. 10,000/- is deposited for 9 years at 10% rate of interest. Calculate Future Value.

2. Calculation of Future Value (At Compound Interest)

If an Investor deposits Rs. 1 Lacs for 3 years at 10 % rate of interest. Calculate Future Value?

3. If Rs 1 lacs is deposited for 10 years at 15% rate of interest. Calculate Future Value?
FV = P × CVFn,i, If CVF n,i as per table is 4.046.
4. Calculating Future Value of an Annuity
A Company deposits Rs. 20,000/- at the end of each year for 4 years @ 6%. How much annuity would be accumulated?
FV = A × CVFAn,i If CVFAn,i = 4.375

5. Calculate Present Value (For Single Cash Flow)

An Investor wants to know the P. V. of Rs. 5 lacs to be received after 20 years @ 10%.
PV = FV × PVFn,i If PVF 20, 10 = 0.149

6. Calculate Present Value for Rs 20 Lacs received after 20 years @ 9%.

7. Calculate Present Value for Rs 1 Crore received after 20 years @ 9%. If PVF 20, 9 = 0.178
8. Calculate Present Value for Rs 5 Crore received after 20 years @ 9%.

9. Calculate Present Value (For Annuity

Suppose you receive Rs. 10,000/- an annuity for 5 years and rate of interest is 10 %.
PV = FV × PVFAn,i If PVFA 5, 10 = 0.149

From the Desk of Dr. Harjit Singh

Exercise

1. Calculation of Future Value (At Simple Interest)

If Rs. 10,000/- is deposited for 9 years at 10% rate of interest. Calculate Future Value.

2. Calculation of Future Value (At Compound Interest)

If an Investor deposits Rs. 1 Lacs for 3 years at 10 % rate of interest. Calculate Future Value?

3. If Rs 1 lacs is deposited for 10 years at 15% rate of interest. Calculate Future Value?
FV = P × CVFn,i, If CVF n,i as per table is 4.046.
4. Calculating Future Value of an Annuity
A Company deposits Rs. 20,000/- at the end of each year for 4 years @ 6%. How much annuity would be accumulated?
FV = A × CVFAn,i If CVFAn,i = 4.375

5. Calculate Present Value (For Single Cash Flow)

An Investor wants to know the P. V. of Rs. 5 lacs to be received after 20 years @ 10%.
PV = FV × PVFn,i If PVF 20, 10 = 0.149

6. Calculate Present Value for Rs 20 Lacs received after 20 years @ 9%.

7. Calculate Present Value for Rs 1 Crore received after 20 years @ 9%. If PVF 20, 9 = 0.178
8. Calculate Present Value for Rs 5 Crore received after 20 years @ 9%.

Calculate Present Value (For Annuity

9. Suppose you receive Rs. 10,000/- an annuity for 5 years and rate of interest is 10 %.
PV = FV × PVFAn,i If PVFA 5, 10 = 0.149