The recognition of the time value of money and risk is crucial in financial decision making”. (a) Distinguish between an ordinary annuity and an annuity due. (b)Shares in Fluke Plc currently sell for Rs 4200 and will be worth Rs 4,975 in 7.5 years. Calculate the rate of return. (c)MauBank Ltd has made an interesting offer on loans for all first-time buyers of a house having the following particulars: Loan amount: Rs 3,500,000 Rate of interest: 4% per annum (Annualised Percentage Rate) Maturity period: 30 years Calculate the monthly payment.
“The recognition of the
(a) Distinguish between an ordinary
(b)Shares in Fluke Plc currently sell for Rs 4200 and will be worth Rs 4,975 in 7.5 years.
Calculate the
(c)MauBank Ltd has made an interesting offer on loans for all first-time buyers of a house having
the following particulars:
Loan amount: Rs 3,500,000
Rate of interest: 4% per annum (Annualised Percentage Rate)
Maturity period: 30 years
Calculate the monthly payment.
(d) John who is 28 years old, plans to retire at the age of 60 with an accumulated lump sum of
Rs2.5M. Calculate his monthly contribution assuming an Annualised percentage rate of 8%.
“Ratios provide the vital signs used to measure corporate health, allowing investors to drill down
to specific aspects of the company’s operational status.”
In less than 600 words, explain how the use of ratios can help in financial analysis.
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