Time Value of Money

CHAPTER NO. 2
Numericals: (Problems)
 Q 10. Data: FV=1000,
i= 10%,
n=10

Formula:

For Perpetuity:
Numericals: (Problems)
Q 12. a). PMT=10,000, b). i=10%
i=5%, n=15
Formula:

C). at i=5%, PV=30,000, n=15

at i=10%, PV=30,000, n=15
Numericals: (Problems)
Q 13. PV=190,000
n=20
i=17%

Formula:
Numericals: (Problems)
Q 14. a). PV=8000, n=36, i=1%,

Develop Amortization Table, (for 36 months)

Year Installment Payment Monthly I Principle Payment Amount at the end
Numericals: (Problems)
Q 14. b). PV=184,000, n=25, i=10%,

Develop Amortization Table, (for 25 years)

Year Installment Payment Monthly I Principle Payment Amount at the end
Numericals: (Problems)
Q 16. FV=500,000
i= 20%
n= 5
A). Annually
B). Semiannual
C). Quarter
D). Continuous
Numericals: (Problems)
Q 17. Mr. Srivastava PMT=2000, i=7%, n=10, n=35
Formula:
FV=
Mr. Sankar PMT=2000, i=7%, n=35, FV=?
FV=
Now,
Srivastava Investment=295,027-276,474=18, 553 more than Sankar