Student ID: bc230217501

Q.1 : How much money deposited now will provide

payments of Rs. 15000 at the end of each halfyear
for 10 years, if interest is 16% compounded six-
monthly.
Ans: As we know that in Lesson 8 the teacher tells about
compound interest so in compound interest the total amount +
the 10% of the total value of the money deposit for example
you have 100$ you deposit and u get 10% interest every month
the next month u get 110$ because you get in the previous
month You already had 10$ so it adds and give the total
amount with the 10% interest rate.
So the Payment amount is (Rs.15000)
r= interest rate per compounding period (16%/2=8%= 0.008)
n= Total Number of compounding periods (10 years x2=20)
So
PV=15000x((1-(1+0.008)^(-20))/0.08)
The answer is 1,24330.51 should be deposited to provide
payments of the Rs.15000 at the end of each half year for 10
years with a compounded interest rate of 16% Percentage