Académique Documents
Professionnel Documents
Culture Documents
Q7.Given,
FV=5000, n-=10yrs, PV=1000, r=?
(5.000 4.411) x 2%
r = 16% + = 17.4%
(5.234 4.411)
Q8 The present value of Rs.10,000 receivable after 8 years for various discount rates (r ) are:
r = 10% PV = 10,000 x PVIF(r = 10%, 8 years)
= 10,000 x 0.467 = Rs.4,670
Q12 To earn an annual income of Rs.5,000 beginning from the end of 15 years from now,
if the deposit earns 10% per year a sum of
Rs.5,000 / 0.10 = Rs.50,000 is required at the end of 14 years.
Q19 The interest rate implicit in the offer of Rs.20,000 after 10 years in lieu of Rs.5,000
now is:
Rs.20,000
FVIF (r,10 years) = = 4.000
Rs.5,000
Q22 The discounted value of the annuity of Rs.2000 receivable for 30 years, evaluated as
at the end of 9th year is:
Rs.2,000 x PVIFA (10%, 30 years) = Rs.2,000 x 9.427 = Rs.18,854