Me tika Hadana hati kiyala deepalako.......
4. A 20-year ordinary annuity pays an annual payment of Rs.12,000. What is this annuity's present value for a 9 percent interest rate?
5. In the previous question, each annual payment is 4 percent larger than the previous one. Find the present value of this growing annuity?
6. Your car loan is for 10,000 to be paid over 5 years. If the interest rate is 12% per year, what are your monthly payments?
7. What is the price of a bond of Rs1000 par value with a 10 percent yield to maturity if the coupon payments are Rs.40 every six months and the bond matures in 5 years?
8. While you were a student in college, you borrowed Rs.12,000 in student loans at an interest rate of 9% per year, compounded annually. If you repay Rs.1,500 per year, how long to the nearest year, will it take you to repay the loan?
9. You need to accumulate Rs.10,000. To do so, you plan to make deposits of Rs1,250 per year, with the first payment being made a year from today, in a bank account which pays 12 % interest, compounded annually. Your last deposit will be less than Rs1,250 if less is needed to round out to Rs10,000. How many years will it take you to reach your Rs10,000 goal, and how large will the last deposit be?
10. Your client is 30 years old and wants to begin saving for retirement. You advise the client to put Rs.5,000 a year into the stock market. You estimate that the market's return will be on average of 12% a year. Assume the investment will be made at the end of the year. How much money will he have by age 55? By age 65?
11. You must pay a creditor Rs.6,000 one year from now, Rs.5,000 two years from now, Rs.4,000 three years from now, Rs.2,000 four years from now, and a final Rs.1,000 five years from now. You would like to restructure the loan into five equal annual payments due at the end of each year. If agreed interest rate is 6% compounded annually, what is your payment?
4. A 20-year ordinary annuity pays an annual payment of Rs.12,000. What is this annuity's present value for a 9 percent interest rate?
5. In the previous question, each annual payment is 4 percent larger than the previous one. Find the present value of this growing annuity?
6. Your car loan is for 10,000 to be paid over 5 years. If the interest rate is 12% per year, what are your monthly payments?
7. What is the price of a bond of Rs1000 par value with a 10 percent yield to maturity if the coupon payments are Rs.40 every six months and the bond matures in 5 years?
8. While you were a student in college, you borrowed Rs.12,000 in student loans at an interest rate of 9% per year, compounded annually. If you repay Rs.1,500 per year, how long to the nearest year, will it take you to repay the loan?
9. You need to accumulate Rs.10,000. To do so, you plan to make deposits of Rs1,250 per year, with the first payment being made a year from today, in a bank account which pays 12 % interest, compounded annually. Your last deposit will be less than Rs1,250 if less is needed to round out to Rs10,000. How many years will it take you to reach your Rs10,000 goal, and how large will the last deposit be?
10. Your client is 30 years old and wants to begin saving for retirement. You advise the client to put Rs.5,000 a year into the stock market. You estimate that the market's return will be on average of 12% a year. Assume the investment will be made at the end of the year. How much money will he have by age 55? By age 65?
11. You must pay a creditor Rs.6,000 one year from now, Rs.5,000 two years from now, Rs.4,000 three years from now, Rs.2,000 four years from now, and a final Rs.1,000 five years from now. You would like to restructure the loan into five equal annual payments due at the end of each year. If agreed interest rate is 6% compounded annually, what is your payment?
