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Time Value of Money
Question 1
 A borrower offers 16% nominal rate of interest withquarterly compounding. What is the effective rate of Interest?
Question 2
Fifteen annual payments of Rs.5000 are made into adeposit account that pays 14% per year. What is theinterest rate implicit in this offer?
 
Time Value of Money
Question 3
 A finance company advertises that it will pay a lump-sum of Rs.44650 at the end of five years to investors whodeposit annually Rs.6000 for 5 years. What is theinterest rate implicit in this offer?
Question 4
What is the present value of Rs.1000000 receivable 60yrsfrom now, if the discount rate is 10%?
 
Time Value of Money
Question 5
 A 12-payment annuity of Rs.10000 will begin 8 yearshence. (the first payment occurs at the end of 8 years).What is the present value of this annuity if the discountrate is 14%.
Question 6
Mahesh deposits Rs.200000 in a bank account which pays10% interest. How much can he withdraw annually for aperiod of 15 years.
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