Answer all the following questions

Q 1. JP Group accepts deposits for 10 years promising a rate of interest of 11%. Calculate the future value of your investment if: i. An amount of 1,00,000 is invested today ii. An amount of 10,000 in invested annually for 10 years Q 2. JP Group has issued deposits worth Rs 100,00,000 for 20 years. If the group wishes to make annual investments what should be the minimum amount it needs to invest every year to generate enough corpus for redemption of all the deposits after 20 years. The company expects to generate a return of 9% on its investments. Q 3. Assume that you are given a choice between incurring an immediate outlay of Rs 10,000 as a single investment for the next 5 years, and having to pay Rs 2,310 every year for the next 5 years; the discount rate is 11 per cent. What would be your choice? Q 4. Compute the present value for a bond that promises to pay interest of Rs 150 a year for thirty years and Rs 1,000 at maturity. This first interest payment is paid one year from now. Use a rate of discount of 8 per cent. Q 5. You have Rs 6,000 to invest. What will be the value of your investment in 10 years, if the interest rate is (a) 6%, (b) 10%, (c) 20%, and (d) 30%? Assume annual compounding. Would your answer change if compounding is done halfyearly? Show computations.