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
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
Problem 1PS
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff832cb65-6c3e-4442-9cc3-b056a83b63e6%2Fa1f58b35-7b2a-412a-8188-82284a894297%2Fm8fnfn_processed.jpeg&w=3840&q=75)
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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