TVM Practice Problems

1. Mr. Phillip would like to invest Rs. 1000 at t=0 in FD of SBI. Interest rate is 12% PA CA. How much
Mr. Phillip would have at the end of year 5?

2. Mr. Phillip wants to invest Rs. 1000 at the end of each year for the next 5 years. If the interest
rate is 12%, how much Mr. Phillip would have in his account at the end of year 5?

3. Mr. Phillip is going to receive Rs. 1000 at the end of year 5. If the discount rate is 12%, how is Rs.
1000 worth at t=0?

4. Mr. Phillip is going to receive Rs. 1000 at the end of each year for the next 5 years. If the
discount rate is 12%, how much is the sum worth at t=0?

2A Mr. Phillip wants to invest Rs. 1000 at the beginning of each year for the next 5 years. If the interest
rate is 12%, how much Mr. Phillip would have in his account at the end of year 5?

4A Mr. Phillip is going to receive Rs. 1000 at the beginning of each year for the next 5 years. If the
discount rate is 12%, how much is the sum worth at t=0?

2B Mr. Phillip wants to invest Rs. 1000 at the end of each month for the next 5 years. If the interest rate
is 12%, how much Mr. Phillip would have in his account at the end of year 5?

2C Mr. Phillip wants to invest Rs. 1000 at the beginning of each month for the next 5 years. If the
interest rate is 12%, how much Mr. Phillip would have in his account at the end of year 5?

4B. Mr. Phillip is going to receive Rs. 1000 at the end of each month for the next 5 years. If the discount
rate is 12%, how much is the sum worth at t=0?

4C. Mr. Phillip is going to receive Rs. 1000 at the beginning of each month for the next 5 years. If the
discount rate is 12%, how much is the sum worth at t=0?