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Time Value of Money FV Solution (1 Solution)

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1 Sinking Fund 10000000

ABC Ltd has Rs 10 crore bond


NPER 15 annum. The bonds will be red
Rate 10% wishes to create a sinking fun
sinking fund each year so that A
PMT ₹ 314,737.77 $314,737.77 retire

2
EPS 3
FV 4.02
NPER 10 The earnings of Fairgrowth L
increased over a 10-year period
Rate 3% of the e

3 PMT 4000
Rate 10%
NPER 4 A person is required to pay four
in his deposit account that pay
FV ₹ 18,564.00 the future value of

4 Principal 4000000
Rate 16%
Effective Rate 8%
NPER 10
Period 5 XYZ Company invests 40,00,000 in certificates of
m 2 per year, compounded semi-annually. What w
investment at the end of 5 years when the com
FV ₹ 8,635,699.99 new plant?

5 PMT 50000
In the beginning of 2006, the directors of Molloy
Rate 11% will have to be expanded in a few years. The com
NPER 5 starting on June 30, 2006, into a trust fund that
annually. How much money will be in the fund o
FV ₹ 311,390.07 been mad

6 FV 31
PV 21
NPER 5
Rate 8%

7 PV 500
FV 1000
Rate 10%
NPER 7.27254089734
8 Rate 15%
m 12 4 2
EROI 0.16075451772 0.15865041504 0.155625
0.16075451772

9 Rate 12%
Principal Time FV
250 4 ₹ 393.38 $393.38
500 3 ₹ 702.46 $702.46
750 2 ₹ 940.80 $940.80
1000 1 ₹ 1,120.00 $1,120.00
1250 0 ₹ 1,250.00 $1,250.00
₹ 4,406.64 $4,406.64

10 Principal 50000
Option I Option II
Rate 11% 11.75%
Effective Rate 0.00916666667 0.05875
m 12 2
Time 12 2

FV ₹ 55,785.94 ₹ 56,047.58
ABC Ltd has Rs 10 crore bonds outstanding. Bank deposits earn 10 per cent per
annum. The bonds will be redeemed after 15 years for which purpose ABC Ltd
wishes to create a sinking fund. How much amount should be deposited to the
sinking fund each year so that ABC Ltd would have in the sinking fund Rs 10 crore to
retire its entire issue of bonds?

Pv 3
fv 4.02
The earnings of Fairgrowth Ltd were Rs 3 per share in year 1. They nper 10
increased over a 10-year period to Rs 4.02. Compute the rate of growth
of the earnings per share. rate 3%

pmt 4000
pv
A person is required to pay four equal annual payments of Rs 4,000 each fv ($18,564.00)
in his deposit account that pays 10 per cent interest per year. Find out
the future value of annuity at the end of 4 years. nper 4
rate 10%

pmt
pv 4000000
fv $8,635,699.99
nper 5
nvests 40,00,000 in certificates of deposit that earn 16% interest rate 16%
mpounded semi-annually. What will be the future value of this m 2
the end of 5 years when the company plans to use it to build a
new plant?

pmt 50000
ng of 2006, the directors of Molloy Corporation decided that plant facilities
expanded in a few years. The company plans to invest: 50,000 every year, pv
ne 30, 2006, into a trust fund that earns 11 per cent interest compounded fv $311,390.07
much money will be in the fund on June 30, 2010, after the last deposit has
been made? nper 5
rate 11%

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