NUMERICAL PROBLEMS
  1. Find out the future value of Rs 15,000 invested now for a period of 5 years using a time preference rate of 12%.
  2. Compute the present value of Rs 60,000 to be received each year for 3 years from now using a discount rate of 14%.
  3. A company promises to pay 6% interest annually, forever, on Rs 5,000 invested in one of its policies. Find out the present value of perpetuity annuity.
  4. Find the present value of Rs 100 paid in Years 2, 4, 6, 8 and 10 assuming a 10% discount rate.
  5. You have to choose between two savings accounts. One pays an annual rate of 6.10% compounded quarterly, whereas the other pays an annual rate of 6% compounded monthly. Which account will give you greater value?
  6. At 10% annual interest, how long does it take ...

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