Ques 1.You invest Rs,5,000 today. You will earn 8% interest.How much will you have in 4 years?

PV 5000
interest 0.08
Nper 4
FV $6,802.44

Ques 2.You have Rs.4,50,000 to invest. If you think you can earn 7%, how much could you accumulate in 10 years?

PV 450000
interest 0.07
Nper 10
FV $885,218.11

Ques 3.If a commodity costs Rs.500 now and inflation is expected to go up at the rate of 10% per year, how much will the commodity cost in 5 y

PV 500
inflation 0.1
Nper 5
FV $805.26

Ques 4.You invest Rs.2,000 in PPF each year for 5 years.If interest on these PPF is 4%, how much will you have at the end of those 5 years?

PMT 2000 2000 2000 2000 2000 2000

Nper 5 0 1 2 3 4
interest 0.04
FV $10,832.65 2000 2080 2163.2 2249.73 2339.72 ###

Ques 5.If you deposit Rs.4,500.00 each year into an account paying 8% interest, how much will you have at the end of 3 years?

PMT 4500
interest 0.08
Nper 3
FV $14,608.80

Ques 6.If you want to have Rs.10,000 in 3 years and you can earn 8%, how much would you have to deposit today?
FV 10000
Nper 3
interest 0.08
PV $7,938.32

Ques 7. If you think you can sell an asset for Rs.25,000 in five years and you think the appropriate discounting rate is 5%, how much would you b

FV 25000
Nper 5
rate 0.05
PV $19,588.15

Ques 8.You borrow Rs.50,000 and will make monthly payments for 2 years at 12% interest.How much will those payments be?

PV 50000
Nper 24
interest 0.01
FV $63,486.73

Ques 9.You invest Rs.8,000 at 6% interest, which will be compounded semiannually. How much will you have in three years?

PV 8000
interest 0.03
Nper 6
FV $9,552.42

Ques 10. Raman an IIM graduate wants to retire at age of 50.At present Raman age is 26.After retirement he donot want to work and wants to a
money for his expenses after retirement. For this he invest Rs.10000/- every month for 24 years at 12% returns. How much money will he accum
retirement?
PMT 10000
Nper 288
interest 0.01
FV $16,561,259.05
will the commodity cost in 5 years?

he end of those 5 years?

d of 3 years?
is 5%, how much would you be willing to pay for the asset today?

yments be?

want to work and wants to accumulate good amount of

w much money will he accumulate at the time of
Ques.1:What is the present value of Rs.1000 due in 3 years at 6% per annum compounded quarterly ?

PV $836.39
FV 1000 836.39
Nper 12
Interest 0.02

Ques 2:It is estimated that the population of India in 1980 will be 700 millions. What will be the population of India in the year 2005 if the compou

PV 700
Nper 25
Interest 0.02 0.01
FV $1,148.42 $897.70

Ques 3:Sanjay invested Rs.930000 for 8 yrs @ 9% where it was compounded annually for the 1st 3 yrs and compounded quartly for the last 5 yrs

0 1 2 3 4 5 6 7 8
PV 930000
Nper 3
interest 0.09
FUTURE VALUE after 3 yrs-----------> $1,204,376.97
Nper 20
interest 0.02
FV $1,879,441.34

Ques 4.Ramesh wants to save up for the college cost of his child,Payal.The cost of attending college is Rs.140000 today.Payal is 8 yrs old & will be

0 1 2 3 4 5 6 7 8 9
PV of fee 140000
Fee growth 0.08 ###
FV of fee $302,249.50

Amount Rs.302249.50 , Ramesh wants to save every year at 11%

FV of fee $302,249.50
Nper 10 EMI
interest 11%
PMT $18,074.95

Ques 5.Anil invested Rs.250000 for 5 years @ 8% annually for 3 years and quartly for 2 years.How much did he received?

0 1 2 3 4 5
PV 250000
Nper 3
interest 0.08
FUTURE VALUE after 3 yrs-----------> $314,928.00
Nper 8
interest 0.02
FV $368,988.35

Ques 7:You are likely to receive Rs.85000 and Rs.91000 at the end of 19 and 21 years and if the discount rate is 6%, what is the present value?

FV 85000 FV 91000
Nper 19 Nper 21
rate 0.06 rate 0.06
PV $28,093.61 PV $26,768.14

total value $54,861.75

Ques 8: ICICI Bank which wants to buy a computer has two alternatives.
Alternatives 1 is to purchase the computer by paying Rs320000 (payment to be made at time of purchases).Free services is available for a perio
Afterwards a monthly services charges of Rs.2000 should be paid at the end of each month. At the end of 5 years from the date of purchase the v
the computer and pay (at that time) Rs.20000.

Alternative 2 is to pay a monthly rental of Rs.10000 at the end of each month and retain the computer for a period of 5 years. Free services is av
period. Which alternative is better? Indicate clearly all the steps. Assume that the company uses an interest rate of 12% compounded annually to
Option A
Month 0 1 2 3 4 5 6 7 8 9
Investment -320000
Service charges 0 0 0 -24000 -24000 -24000
Salvage 20000
Cash flows -320000 0 0 -24000 -24000 -4000
Interest 0.12
NPV ($316,611.49)
Option B
Year 0 1 2 3 4 5
Investment -120000 -120000 -120000 -120000 -120000 -120000
NPV ($493,368.88)

Option A is better than Option B

the year 2005 if the compounded annual rate of increase is (a) 2% (b) 1%.

ed quartly for the last 5 yrs.What did he receives on maturity?

y.Payal is 8 yrs old & will be starting college in 10yrs.College cost are expected to increase by 8%.If his rate of return is 11%.How much money will he need t

10
what is the present value?

vices is available for a period of 2 years.

the date of purchase the vendor will take back

5 years. Free services is available for the entire

% compounded annually to evaluate investments.

10 11 12 13 14 15 16 17 18 19 20 21 22
w much money will he need to save up every year end.
23 24 25 26 27 28 29 30 31 32 33 34 35
36 37 38 39 40 41 42 43 44 45 46 47 48
49 50 51 52 53 54 55 56 57 58 59 60