1.You have Rs 50000 available to today for investment.

A bank has offered 8% interest

payable annually. For how long should you invest with the bank so that the amount is
doubled?
PV
Rate
FV
Period
 -50000
8%
100000
9.006468
2.Abc Ltd registered sales of Rs 100 Lakhs in the Year 1990 if the sales
grows by 15% what is the Projected Turnover of Abc Ltd after 10 yrs?
Rs. in lakhs
PV -100
Rate of growth 15%
Period (Yrs) 10
FV 404.56
 3. A finance firm has announce the scheme lakhpati in 10 years, it has
promiced to pay 10000 after 10 years for every Rs 20000 deposited
today. The advertisement states that the firm pays Rs 80000 as
interest at rs 8000 per year and therefore offers a 40% annual return.

3.1. do you agree with claim

3.2. what is the actual return offered
3.3. what would be the amount of it had offered 40% per annum

No, I dont agree with his claim because he is calc

on the principal amount whereas the actual amo
3.1 inflation and opportunity cost
3.2 PV -20000
FV 100000
Period (Yrs) 10
Rate 17.46%
3.3 PV -20000
Rate 40%
Period (Yrs) 10
FV 578,509.31
 with his claim because he is calculating it as the simple interest earned
amount whereas the actual amount earned has to be adjusted for
portunity cost
4. Suppose you have Rs 12000 today and need to perserve it for the next 8
years when you require to use the saving which is estimated to be 40000

4.1. At what rate should you save the money to have 40000 is 8yrs
4.2. if you need 40000 is 8 yrs what amount should you invest
4.1 PV -12000
FV 40000
Period (Yrs) 8
Rate 16.24%
4.2 FV 40000
Rate 8%
Period (Yrs) 8
PV -21,610.76