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Q1. Awan chemicals borrowed Rs10,000/- from a bank paying 13.5% compound interest for 8 years. What is the accumulated interest at the end of the 8 years? Interpret the future value for Rs.10000/-

Q1. Awan chemicals borrowed Rs10,000/- from a bank paying 13.5% compound interest for 8 years. What is the accumulated interest at the end of the 8 years? Interpret the future value for Rs.10000/-

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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subject: financial management
Q.1. Awan chemicals borrowed Rs10,000/- from a bank paying 13.5% compound interest for 8 years. What is the accumulated interest at the end of the 8 years? Interpret the future value for Rs.10000/- Q.2. Dr. Johan eams 7% simple interest for 15 years against his investment of $175000. Calculate the Simple interest Dr. Johan will earned after 15 years Q.3. Assume that you need $100,000 in 2 years, examine the process to determine how much you need to deposit today at a discount rate of 12.5% compounded annually. Q.4. Mr. Adnan will receive the set of following cash flows given below. Calculate Present Value Annuity at a discount rate of 10%? Period Cashflow 1 Rs.1000/- 2 3 Rs.800/- Rs.800/- Rs.600/- 4 5 Rs.600/- Q.5. Mr. Zahid deposited S2500 at a simple interest rate of 10.5% for the period of 7 years. Calculate the interest he supposed to earn at the end of period. Q.6. Good Books Company is borrowing $10,000 at a compound annual interest rate of 12%. Amortize the loan if annual payments are made for 5 years.
Transcribed Image Text:Q.1. Awan chemicals borrowed Rs10,000/- from a bank paying 13.5% compound interest for 8 years. What is the accumulated interest at the end of the 8 years? Interpret the future value for Rs.10000/- Q.2. Dr. Johan eams 7% simple interest for 15 years against his investment of $175000. Calculate the Simple interest Dr. Johan will earned after 15 years Q.3. Assume that you need $100,000 in 2 years, examine the process to determine how much you need to deposit today at a discount rate of 12.5% compounded annually. Q.4. Mr. Adnan will receive the set of following cash flows given below. Calculate Present Value Annuity at a discount rate of 10%? Period Cashflow 1 Rs.1000/- 2 3 Rs.800/- Rs.800/- Rs.600/- 4 5 Rs.600/- Q.5. Mr. Zahid deposited S2500 at a simple interest rate of 10.5% for the period of 7 years. Calculate the interest he supposed to earn at the end of period. Q.6. Good Books Company is borrowing $10,000 at a compound annual interest rate of 12%. Amortize the loan if annual payments are made for 5 years.
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