Question 1: 1.On your birthday, your uncle gave you the money in his savings account. His only deposit was Rs.10,000 made 50 years ago. The savings account paid 8% compounded annually. How much money is in the account today? 2. A loaf of bread costs Rs.2.40 today. If its price increases by 6% per year, how much will an equivalent loaf cost in 20 years? 3.A stock has paid dividends regularly for the last 20 years, starting with Rs.1.50 in 1964 and rising to Rs.4 in 1984. If these dividends have been growing at a constant rate, what has that rate been for the last 20 years? 4.If the discount rate is 12%, what is PV10 of Rs.3,000 received at the end of each of the next 10 years except for the fourth year?
Question 1:
1.On your birthday, your uncle gave you the money in his savings account. His only deposit was Rs.10,000 made 50 years ago. The savings account paid 8% compounded annually. How much money is in the account today?
2. A loaf of bread costs Rs.2.40 today. If its price increases by 6% per year, how much will an equivalent loaf cost in 20 years?
3.A stock has paid dividends regularly for the last 20 years, starting with Rs.1.50 in 1964 and rising to Rs.4 in 1984. If these dividends have been growing at a constant rate, what has that rate been for the last 20 years?
4.If the discount rate is 12%, what is PV10 of Rs.3,000 received at the end of each of the next 10 years except for the fourth year?
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