1. Find PV of Rs 4000 received for 5 yrs @ 13% interest rate.

2. Determine the PV of the cash inflows of 3000 for the next 4 years and 7000 & 1000 resp at
the end of 5 & 6 yr. the discount rate is 15%.
3. Compute the present value of a bond that promises to pay 150 /yr for 30 yrs and 1000 on
maturity. The rate of discount is 8%.1788.84
4. Exactly 10 yrs from now Samarth will start receiving a pension of 3000/. The payment will
continue for 16 years. How much is the pension now if the interest rate is 10%. 9954
5. Solve with 2000.6636
6. If an investment offers an annuity of 2000 for 10 years and Rohit invests 10,000 today, what
is the rate of return? 15%
7. Mr. Vibhor takes a loan of 100,000 at 14% interest for purchasing a car. The loan has to be
repaid over the next 5 years. Estimate the monthly installment. 2427.4
8. Ashok is about to retire at the age of 60. His employer COEP has offered him 2 post
retirement options- i) Rs 20,00,000 lump sum and ii)Rs 2,50,000 for 10 years. Assuming 10%
discount rate which is a better option? 1536150
9. Sagar has borrowed Rs, 30,00,000 from Citi Bank for 15 years. The interest rate is 24% per
annum. Compute the amount of annual installment/payment. 749756.32
10. Rohit is 50 years today. He will retire at 60.In order to receive Rs 200,000 annually for 10
years after retirement, how much should he invest at the time of retirement at 10%?
1228920
11. Your grandfather is 75 years old. He has total savings of Rs 80,000. He expects that he will
live for another 10 years and will like to spend his savings by then. He places his savings into
a bank account earning 10% annually. He will draw equal amount every year, the first
withdrawal occurring one year from now in such a way that the account balance becomes
zero at the end of 10 years. How much will be his annual withdrawal? 13019.63
12. What will be the effective rate of return if Rs 10,000 earns 15% interest compounded
quarterly?
13. Mr. Vaibhav intends to purchase a car after 4 years at a cost of 15 lakhs. How much should
he save annually at a compound interest of 10% per annum?
14. Kamal has Rs 100,000 to deposit in a bank for 3 years. Assuming annual, semi annual and
quarterly compounding at 4% interest rate, compute the value to be received at the end of 3
years.