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Information Technology for Managers

Exe-PGDM (2021-22) - Quiz-3
Max Marks: 20 Duration: 30 min

Q1) Suppose you decide to buy a car which is worth 520000. The financer is
ready to finance 90% of the price at 9% per annum for a period of 3 years. Find
out what will be the annual and monthly installment that you need to pay to the
financer. (3 + 3 marks)

Annual Installment_________________?
Monthly Installment ________________?

The finance company has also given a comparative table to check the monthly
installment for different periods (4, 5, 6, 7, 8, 9 and 10 years) for the existing interest
rate. Use one variable input table to create this comparative table. (4 marks)

Q2) You are saving for your child’s college fund. You are going to contribute
the same amount of money to the fund at the end of each year. Your goal is to
end up with $100,000. Assumptions should be clearly mentioned. For annual
investment returns ranging from 4 percent through 15 percent and number of
years investing varying from 5–15 years, determine your required annual
contribution. (10 marks)