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Q1 Simple Interest on a certain sum of money at 10 % per annum for 3 years is Rs. 930. Find the principal if it is known that the interest is compounded annually. The difference between Compound Interest and

Q1 Simple Interest on a certain sum of money at 10 % per annum for 3 years is Rs. 930. Find the principal if it is known that the interest is compounded annually. The difference between Compound Interest and

Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...
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FIRST ASSIGNMENT: The difference between Compound Interest and Q1 Simple Interest on a certain sum of money at 10 % per annum for 3 years is Rs. 930. Find the principal if it is known that the interest is compounded annually. What would $1000 become in a saving account Q2 at 3% per year for 3 years when the interest is not compounded (simple interest)? What would the same amount become after 3 years with the same rate but compounded annually? $1200 is placed in an account at 4% Q3 compounded annually for 2 years. It is then withdrawn at the end of the two years and placed in another bank at the rate of 5% compounded annually for 4 years. What is the balance in the second account after the 4 years. An amount of $1,500 is invested for 5 years Q4 at the rates of 2% for the first two years, 5% for the third year and 6% for the fourth and fifth years all compounded Annually. What is the total amount at the end of the 5 years? A principal of $2000 is placed in a savings Q5 account at 3% per annum compounded annually. How much is in the account after one year, two years and three years?
Transcribed Image Text:FIRST ASSIGNMENT: The difference between Compound Interest and Q1 Simple Interest on a certain sum of money at 10 % per annum for 3 years is Rs. 930. Find the principal if it is known that the interest is compounded annually. What would $1000 become in a saving account Q2 at 3% per year for 3 years when the interest is not compounded (simple interest)? What would the same amount become after 3 years with the same rate but compounded annually? $1200 is placed in an account at 4% Q3 compounded annually for 2 years. It is then withdrawn at the end of the two years and placed in another bank at the rate of 5% compounded annually for 4 years. What is the balance in the second account after the 4 years. An amount of $1,500 is invested for 5 years Q4 at the rates of 2% for the first two years, 5% for the third year and 6% for the fourth and fifth years all compounded Annually. What is the total amount at the end of the 5 years? A principal of $2000 is placed in a savings Q5 account at 3% per annum compounded annually. How much is in the account after one year, two years and three years?
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