Practice sum: time value of money Q1.

If you invest Rs 5000/ today at a compound interest of 9% per annum , what is its value after 75 years ? Q2. If interest rate is 12 % , after how much time Rs 6000 will double? Q 3 . A borrower offers 16% nominal rate of interest with quarterly compounding, what is effective rate of interest? Q4. What is the value of Rs 1000000/ receivable after 60 years if rate is 10%? Q5 A 12 payment annuity of Rs 10000will begin 8 years hence ( after 8 years from today) First payment received at the end of 8 years .what is PV of annuity if discount rate is 14%? Q 6 Mahesh deposits Rs 200000 in a Bank account which pays 10% per annum . How much can he withdraw annually for a period of 15 years? Q 7 Shyam borrows Rs 80000/ for a musical instrument . Monthly rate of interest is 1.25%.loan is repaid in 12 equal monthly instalments . what is the amount of instalment ? prepare loan amortization schedule using excel. Q 8 calculate the value of a deposit ,after 5 years , of Rs 1000/ made today if interest rate is 8% per half year. Q 9 A finance company offers Rs 10000 at the end of 6 years if annual deposit of 6000 is made . What is the rate of interest offered? Q10 At the time of retirement a person is offered to choose one alternative. (A)an annual pension of 10000/ throughout life (b) lump sum amount of Rs 50000/ . Suppose person lives for 15 years and interest rate is 15 % which is better option ?