semi 16. A debt of Rs. 10,000 which is due today is to be repaid by 4 equal yearly payments. the interest rate is 5% compounded quarterly, how much should be each installment F.D=4 be : (a) if the first installment is given today ? (b) if the first installment is given 1 year from today ? 00 00 (6) Rs 3 860.40
semi 16. A debt of Rs. 10,000 which is due today is to be repaid by 4 equal yearly payments. the interest rate is 5% compounded quarterly, how much should be each installment F.D=4 be : (a) if the first installment is given today ? (b) if the first installment is given 1 year from today ? 00 00 (6) Rs 3 860.40
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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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Question
![FINANCIAL MATHEMATICS
98
installments due 4 and 5 years hence, respectively. If money is worth 4% convertei
[Ans. Rs. 6535.58]
semi-annually how much should each installment be ?
16. A debt of Rs. 10,000 which is due today is to be repaid by 4 equal yearly payments. Ii
the interest rate is 5% compounded quarterly, how much should be each installment
FoD =4
be:
(a) if the first installment is given today?
(b) if the first installment is given 1 year from today?
[Ans. (a) Rs. 4,029.32, (b) Rs. 3,860.40|
The sum of Rs. 2,000, 3,000 and 4,000 are due at the end of 2, 4 and 8 years
respectively. It is proposed to replace this series of payments by a single sum of hs
oto of interest 10% p.a. effective. Find the](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F218cd1d1-168b-4c53-8b57-3f6e1216dab7%2Fd4506509-783e-4d1e-b114-0fb3968ab4b8%2Fg01ylv3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:FINANCIAL MATHEMATICS
98
installments due 4 and 5 years hence, respectively. If money is worth 4% convertei
[Ans. Rs. 6535.58]
semi-annually how much should each installment be ?
16. A debt of Rs. 10,000 which is due today is to be repaid by 4 equal yearly payments. Ii
the interest rate is 5% compounded quarterly, how much should be each installment
FoD =4
be:
(a) if the first installment is given today?
(b) if the first installment is given 1 year from today?
[Ans. (a) Rs. 4,029.32, (b) Rs. 3,860.40|
The sum of Rs. 2,000, 3,000 and 4,000 are due at the end of 2, 4 and 8 years
respectively. It is proposed to replace this series of payments by a single sum of hs
oto of interest 10% p.a. effective. Find the
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