1. You need 15 lacs to go on a word tour in 3 years.

How much should you deposit every month in

a saving account that pays 9% per year, compounded monthly?

2. You make an investment of 1000 and it will pay you 1,191 three years from now. What annual
rate of return are you earning?

3. Suppose you deposit 30,000 at the end of each month into deposit account for 5 years. How
much will you have in the account if the rate of interest is 6%? If no additional deposits are
made after the last contribution, and the amount is allowed to grow for another 10 years, at the
same rate of return, what is ending value of the account?

4. Mr. Ravi plans to buy a new car worth Rs. 8 lacs. He is willing to make a down-payment of ₹ 1.5
lacs and wants Union Bank of India to finance the purchase. The automobile rates prevailing is
9%. Ravi will pay the EMI for the next 3 years. Calculate the EMI

5. An individual who is 30 years old, plans to retire when he reaches 60. He wants to begin a
pension account and make periodic contributions every month till the time he is employed.
After he retires, he wants a monthly pension of ₹ 120,000 for the next 20 years. Currently, the
investment account can generate a return of 8%. Assume the pension payments are to be
received at the end of the month, calculate the monthly contributions that he is required to
make, if he can invest the money at the end of the month