No. for CAICWA & MECICEC MASTER MINDS 1. TIME VALUE OF MONEY (ACADEMIC INTEREST) NO. OF PROBLEMS IN 41.5E OF CA INTER: CLASSROOM - 18, ASSIGNMENT - 13 NO. OF PROBLEMS IN 42E OF CA INTER: CLASSROOM - 18, ASSIGNMENT - 13 NO. OF PROBLEMS IN 42.5(2™ Version) OF CA INTER: CLASSROOM - 9, ASSIGNMENT - 8 ICAI has dropped this chapter in the new syllabus but without the knowledge of this chapter students cannot understand further chapters properly. Hence we have dropped some problems in this chapter and decided to teach the same to students. No need to prepare this chapter for examination purpose. MODEL - WISE ANALYSIS OF PREVIOUS EXAMINATIONS u.09 T0| No. Model Name N09 |N-40T9| m2 M13 TO NAS Nez N46 Nag Maz Naz M48 (0) M18 (\) N-18 (0) N18 (N) [Simple Interest z [Compound interest Future Value of Single Amount z Present Value of Single Amount Future Value of Annuity immediate Present Value of Annuity immectato s Present Value of Perpetuty Present Value of Growing Perpetuity | BT TE ES Cay’ inOLD sit Problem No. | Problem im inthis | No.in NEW | Problem No. Kioto Pi RTP | MTP Previous Exams Remarks Material Sh CRI - m2 CR2 7 CR3 a CR4 CRS a Nie [Nie CRE TAS CR7 5 - CRE CRO : z ASG = E ASG? ‘ASG3 ASG 4 ASG5 g me ASG6 = TAG ‘ASGT = ILAS ASGS 1-20 TIME VALUE OF MONE’ a) The basic concept in equal to one rupee tomorrow, other things being equal”. b) Time Value of Money means “worth of a rupee received today is different from the worth of a rupee to be received in future”. CA Inter_42.5 (2 Version)_F.M. (P)_Time Value of Money. 1, ey inance is Time Value of Money which means that “One rupee today is notPh: 98851 25025/26 ww stermindsi om ©) The preference for money now, as compared to future money, is known as Time Preference of Money d) When individuals or business institutions borrow money from others for certain time period, they pay some extra money other than the borrowed amount which is known as interest. Thus money can also be rented in the same way as objects. It means money has some time value. ) The money being borrowed by an individual is called ‘Principal’ f) The additional sum of money paid for using money is called ‘Interest’. Such interest is usually calculated as a percentage and the interest paid for use of Rs.100 is called “Rate Percent”. If this rate percent is calculated for a year, it is called Rate percent per annum. g) The sum of Principal and Interest is called "Amount": PROBLEMS FOR CLASSROOM DISCUSSION MODEL 2: CONCEPT OF COMPOUND INTEREST COMPOUND INTEREST: a) It is another method of calculation of interest. Practically everybody will be familiar with this method of calculation of interest. b) In this method the interest earned by an investment is reinvested so that it also earns interest ie interest is again converted into principal and hence one can Sain interest on interest. ¢) E.g.: Suppose that Rs.100 is invested at the rate of 6% unded annually. At the end of first year the value of investment is the original principal Rs.106, Now, Rs.106 becomes principal for the s C.|.= Compound Interest. W A = Amount (principal + intorea)? 1 = Rate of interest (expressed in decimal form) n= Number of years P = Principal sum of money This formula assumes that interest is compounded annually. MODEL 3: CALCULATION OF FUTURE VALUE OF A SINGLE AMOUNT FUTURE VALUE: a) This is also known as terminal value. The accrued amount (FV,) on a principal (P) after n payment periods at i (in decimal) rate of interest per payment period is given by: Annualrate of interest r Where, i =| —————___~——_____ Pa Fitts Number of paymentperiodsperyear a known as future value factor or compound value factor. So FV, ~Po(FIF,,).when computing is done k times a year at an annual interest rate r en FV, =P,(FVIF,,),| Where, FVIF « ») is the future value interest factor at i% for n periods equal(1 + i)" Computation of FV, shall be quite simple if we make use of either the calculator or the future value table showing values of (1 +i)" Note:, CA Inter_42.5 (2% Version)_F.M. (P)_Time Value of Money 4.2.No.t for CAICWA & MECICEC MASTER MINDS PROBLEM 4: 2,000 is invested at annual rate of interest of 10%. What is the amount after 2 years if ‘the compounding is done? a) Annually? b) Semi-annually? (A) (OLD SM) (ANS.: AMOUNT AFTER 2 YEARS ANNUALLY RS.2420, SEM] ANNUALLY RS.2431) (SOLVE PROBLEM NO.1 OF ASSIGNMENT PROBLEMS AS REWORK) Note: PROBLEM 2: A company offers a Fixed deposit scheme whereby Rs.10,000 matures to Rs.12,625 after 2 years, on a half-yearly compounding basis. If the company wishes to amend the scheme by ‘compounding interest every quarter, what will be the revised maturity value? (A) (OLD Pl) (ANS.: REVISED MATURITY VALUE RS.12,670) Note:, PROBLEM 3: A nationalized bank issues “Re-investment certificates” for a period of 3 years. If Rs.5,000 are invested in these certificates, their maturity value becomes Rs. 6,725. Assuming that the interest is compounded every year, what is the rate of interest? —_(@) (ANS.: RATE OF INTEREST: 10%) Note:, MODEL 4: CALCULATION OF PRESENT VALUE OE. SINGLE AMOUNT PRESENT VALUE: LQ be defined as the amount to be invested riod to equal the “Future Amount". of finding Future Value (FV), the formula for into a Present Value formula. Therefore the Present a) Itis the current value of a “Future Amount’. It ¢ today (Present Value) at a given rate over sp. b) Since finding present value is simply the Future Value (FV) can be readily transf Value (Po), becomes: \ Vy (1+ i)" Where, F\n= Future value n years hence Rate of interest per annum n= Number of years for which discounting is done. ¢) Computation of PV, shall be quite simple if we make use of either the calculator or the Present value table showing values of (1+i)" Note: a) The process of computing the present value of future cash flows is called “Discounting”. b) The interest rate used to discount the future cash flow is known as "Discount rate". ¢) The expression 1/(1+)" is called “Discounting factor’ PROBLEM 4: The cost of a new mobile phone is Rs.10,000. If the interest rate is 5 percent, how much would you have to set aside now to provide this sum in five years? (B) (ANS.; AMOUNT SET A SIDE RS. 7,840) (SOLVE PROBLEM NO.2 OF ASSIGNMENT PROBLEMS AS REWORK) Note:, CA Inter_42.5 (2 Version)_F.M. (P)_Time Value of Money.Ph: 98851 25025/26 www.mastermindsi MODEL 5: CALCULATION OF AMOUNT OF ANNUITY / Fl OF ANNUITY IMMEDIATE ANNUITY: a) An annuity is a stream of regular periodic payments made or received for a specified period of time. In an ordinary annuity, payments or receipts occur at the end of each period. The interval is generally year, but it may be half year, quarter or month. b) In fact, annuity means an installment. L.LC Premium, Deposits installments of homes or automobiles are examples of Annuities. NOTE: a) The size of each payment of an annuity is called “Periodic payment”. b) Time interval between 2 successive payment dates of an Annuity is called” Payment Period” or “Payment Interval”. ¢) Total time period is called “Term of Annuity”, 4) An annuity which is payable forever is called “Perpetuity”. e) Present value of an annuity is equal to sum of present values of all installments. ) The total worth of all payments at the conclusion of annuity is called Amount of Annuity, ) The accumulated sum of series of periodic deposits invested for replacement of an asset or for liquidation of a loan is called "Sinking Fund’ FV OF AN ANNUITY: Future value or Amount of Annuity is the sum of future values of each ival payment at the end of each Year. Wrere, OF PVA, =ROFVFA,) \ R Constant Par FVIFAGn) = Fut fo a recurring account, loan flow, terest factor of an annuity ati % for n period. (or) Computation of future value of an annuity (WAR) shall be quite simple if we make use of either the calculator or the future value annuity table FVIFAG») Note: a) Itis assumed that each periodic payment is made at the end of each year/ period b) Future value/ Amount of Annuity is the sum of future values of each individual payment. ¢) Please note that the last payment is made at the end of n*year. So, it will not yield any interest. Note: PROBLEM 5: Mr. X wish to get her daughter admitted into a medical college after 15 years from now. He will be required total Rs. 25,00,000 to get admission into the college. For this he has identified a fund, which pays interest @ 9% p.a. In this regard he wanted to know the amount to be invested in each of the following situations: i) Ifhe decides to make annual payment into the fund at the end of each year; Ihe decides to invest a lump sum in the fund as on today. iii) Ifhe decides to make annual payment into the fund at the beginning of each year. (FVIF/ CVF (15, 0.09) = 3.642, FVIFA) CVFA (15, 0.09) = 29.361, PVIF PVF(15, 0.09) = 0.275 and PVIFA/ PVFA (15, 0.09) = 8.061). (A) (RIP NIG, HTPI N16) (ANS. (D RS. 85,146.96 P.A.; (1). RS. 686,436.02; (1). RS.78,117.68 P.A) (SOLVE PROBLEM NO.3 OF ASSIGNMENT PROBLEMS AS REWORK) Note:, CA Inter_42.5 (2 Version)_F.M. (P)_Time Value of MoneyNo.t for CAICWA & MECICEC MASTER MINDS MODEL 6: PRESENT VALUE OF ORDINARY ANNUITY /ANNUITY IMMEDIATE PRESENT VALUE OF AN ORDINARY ANNUITY: a) It is sum of the present values of Cash flows occur at the end of each period. It represents the amount that must be invested now to purchase the payments due in future. b) Unless otherwise specified, we assume that each payment is made at the end of each payment period, that is called an “Ordinary Annuity’. We also assume that interest is computed at the end of each payment period, PVA, =R(PVIFA,,)] “Where: : PVA, = Present value annuity, R Constant Periodic flow. PVIFin = Present value interest factor of an annuity at i % for n period. c) Computation of PV n shall be quite simple if we make use of either the calculator or the Present value annuity table (PVIFAin). PROBLEM 6: Find out the Present Value of a 4 year annuity of Rs.20,000 discounted at 10%. (8) (OLD SM (ANS.: PRESENT VALUE OF 4Y ANNUITY RS.63,400) (SOLVE PROBLEM NO.4 OF ASSIGNMENT PROBLEMS AS REWORK) Note:, PROBLEM 7: A doctor is planning to buy an X-Ray machine,for his hospital. He has two options. He can either purchase it by making a cash payment of Rs.5.akh8 or Rs.6,15,000 are to be paid in six equal annual installments. Which option do you sugge: 12 percent? Present value of annuity of Re.1 at 12 perce} Note:, é PERPETUITY: a) Perpetuity is a stream of cash flows for an infinite period. b) Fixed coupon payments on permanently invested (irredeemable) sums of money are prime ‘examples of perpetuities. Where, R= the payment or receipt each period i= the interest rate per payment or receipt period ©) Ifa deposit of Rs.1,000 is made in a savings bank account at 414% for an indefinite period then the yearly interest of RS.50 is a perpetuity of interest income so long as the initial deposit of Rs. 1,000 is, kept unchanged. In order to find out the PV of perpetuity, the present value of each of the infinite number of cash flows should be added. But itis difficutt or rather impossible to find out the PV of perpetuity. However, mathematically it can be easily calculated by using following formula: PVp = Annual Cash flow/r Where, PVp is the present value of perpetuity and r is the rate of interest. CA Inter_42.5 (2" Version)_F.M. (P)_Time Value of Money. 15Ph: 98851 25025/26 ww PROBLEM 8: Find out the present value of an investment which is expected to give a return of Rs.2,500 p.a. indefinitely and the rate of interest is 12% p.a. (B)(ANS.: PRESENT VALUE OF AN INVESTMENT RS.20,023) (SOLVE PROBLEM NO.7 OF ASSIGNMENT PROBLEMS AS REWORK) stermindsi Note:, MODEL 8: PRESENT VALUE OF GROWING PERPETUITY GROWING PERPETUITY: a) A stream of cash flows that grows at a constant rate forever is known as growing perpetuity R_, (iy! (si? Where, R = cash flow at the end of first period i the interest rate per payment or receipt period b) A growing perpetuity may be defined as an infinite series of:periodic cash flows which grow at a constant rate per period. In such a case present value of petpeluity is calculated as follows: Pv = Cash flow/ (r-g) \S Where cash flow = The cash flow at the er aon first period, r rate of interest, AO And. g growth rate in RgAGkuty amount c) However, it may be noted that above formtlla can be used only if the rate of interest is more than the rate of growth ie.r> g. PROBLEM 9: A person is going to retire shortly and he wants to maintain his present standard of living he should get a regular income of Rs.50,000 p.a. How much he has to invest now so as to earn interest perpetually. Please note that inflation is growing at the rate of 8%. Investors expected rate of retum is 10%, (0) (ANS.: 50,000) (SOLVE PROBLEM NO. OF ASSIGNMENT PROBLEMS AS REWORK) Note:, lentify the nature of problem? TT —_, Is ita single payment? Is ita series of payments? Want to know value at Want to know value Want to know value at Want to know value a future point of time? as ontoday? —_a future point of time? as on today? v ¥ v Y Future Value Present Value Future Value Present Value of Annuity of Annuity CA Inter_42.5 (2 Version)_F.M. (P)_Time Value of Money 1GNot for CAICWA & MECICEC MASTER MINDS ASSIGNMENT PROBLEMS MODEL 3: CALCULATION OF FUTURE VALUE OF A SINGLE AMOUNT PROBLEM 4: X is invested Rs.2,40,000 at annual rate of interest of 10 percent. What is the amount after 3 years if the compounding is done? 4. Annually 2. Semi-annually (A) (OLD PI) (ANS.; 1) AMOUNT AFTER 3 YEARS ANNUALLY RS.3,19-440 AND 2) SEMI ANNUALLY RS.3,21,624) ‘MODEL 4: CALCULATION OF PRESENT VALUE OF A SINGLE AMOUNT PROBLEM 2: John OLD Smith's great uncle has promised to give him Rs.25,000 at the age 21. John ‘will not reach this ripe old age for four more years. Assuming that he can eam 6%, calculate the amount of money that John OLD Smith will receive as of now? (A) (ANS.: AMOUNT RECEIVE NOW RS. 19,800) MODEL 5: CALCULATION OF AMOUNT OF ANNUITY / Fl OF ANNUITY IMMEDIATE PROBLEM 3: A finance company advertises that it wil pay a lumpsum of Rs. 10,000 at the end of 6 years ‘o investors who deposit annually Rs.1,000. What interest rate is implicit in this offer? (8)(ANS.: INTEREST RATE IS 20% (APP) MODEL 6: PRESENT VALUE OF ORDINARY ANNUITY /ANNUITY IMMEDIATE. PROBLEM 4: The ABC company expects to receive Rs. 1,00,000 p.a. for a period of 10 years from a new project it has just undertaken. Assuming 2 10% rate of attefest, how much would be the present value of this annuity? hs: PRESENT VALUE OF ANNUITY RS. 61480) Ws PROBLEM 5: Ramanuj has taken a 20 month car jgano¥ Rs. 6,00,000. The rate of interest is 12 per cent per annum. What will be the amount of mo! in amortization? —_(B) (OLD Sid) (ANS.:RS.32,249.1) PROBLEM 6: Y bought a TV costing Rs. by making a down payment of Rs. 3,000 and Agreeing to make equal annual paymer years. How much would be each payment if the interest on unpaid amount be 14% compouded annually? (©) (OLD SMYANS.:RS.3431.71) MODEL 7: PRESENT VALUE OF PERPETUITY PROBLEM 7: Ramesh wants to retire and receive Rs. 3,000 a month. He wants to pass this monthly payment to future generations after his death. He can earn an interest of 8% compounded annually. How much will he need to set aside to achieve his perpetuity goal? (A) (OLD Sit) (ANS. AMOUNT NEED TO SET A SIDE RS.452.775) MODEL 8: PRESENT VALUE OF GROWING PERPETUITY PROBLEM 8: Assuming that the discount rate is 7% per annum, how much would you pay to receive Rs. 50, growing at 5%, annually, forever? (©) (OLD Sm) (ANS.: AMOUNT PAY RS.2,500) CA Inter_42.5 (2 Version)_F.M. (P)_Time Value of Money.Ph: 98851 25025/26 APPENDIX-1 (TIME VALUE OF MOI ‘Table A.1 : Compounded Value of a given Amount ie, CVF...) CA Inter_42.5e_1 .M. (P)_ Time Value of Money Period n | a | oe ax | 5m | os | mm | on | om | 10% T | Lor) Loa Toa | 1050} i.080 | L070) 1080] —i.080 | 1.100 2 | 1020 | 1040 xos2 | 1io2 | tive | 14s | 16s | 1s | 121 3 | 1080 | 1.061 3425 [ass | aaer | 1225 | 1260 | 1295 | 101 4 | ros | 1.082 iio | ize | raee | ra | 1960 | 142 | 1464 5_| 10s | 110% az | 176 | 1sse | 1409 | 1460 | 1599 | 26 6) 4062 | ~iz6 1265 | 1840 | 1419 | 1501 | 1887] 1677 | 1.72 | 7 | xo | 149 1sie | 1407 | 1504 | 1606 | 174 | 1828 | 1949 8 | 1083 | rae rsso | 1477 | 1504 | 1s | 151 | 1900 | 2144 9 | 1094 | 1195 1423 | iss | 1689 | 138 | 1990 | g2a72 | 2250 ao_| 1105 | 1219 14s0_| 1620 | 170 | 1967 | 2159 | 2367 | 2504 hue [1240 | 1589] 170 [1608 | 2105 | 2392 | 2580 | 2053, w | ier | 1268 ror | 1796 | 2012 | 2252 | asia | oe | s.99 ws | 1138 | 1294 1665 | 1886 | 2133 | 2410 | 2720 | ao58 | 3452 4 | 1s | 1319 1782 | 1930 | 2201 2os7 | 33a. | 3.797 as _| iter | 1246 1801 | 2079 | 2397 sim | sea | aa77 ae | i473 | are 1sis | 2ies | 2540 342s | 3.970 | 4505 a7 | ise | 1400 1948 | 2292 | 2603 3700 | 4328 | 5.054 1 | 1196 | 1428 2026 | 2407 | 2054 | sse0 | 3.096 | 4717 | 5.560 yo | 1208 | 1457 2107 | 2527 | 3026 | a7 | aoe | siz] ee 20 | 1220 | 1486 2io1_| 2653 | s207 | sa70 | 4661 | seos | 6720 25 [1282 | 1641 2606 | 3386 | 4202 | 5427 | 648 | 8623 | 10895 ao | 1948 | 1a 3249 | 4922 | 5.743 | 7612 | 10.063 | 13268 | 17449 Table A.1 : Compounded Value of a given Amount ie,, CVF,» Period ] n | um | ie | 196 | so | 15% | 0% | am | wwe | aan | 206 iio [1120] 1180 | 1160 | 150 | 4160) 1170 | 1180 | 1190 | 1200 2 | 1232) 1254} 1277 | 1300! 1322) 1346 | 1969} 1992] 1416 | 1440 3 | 1368) 1405} 1449 | 1482) 1521) 1561} 1602| 1649 | 1685 | 1.728 4 | asis] 1574) 1630) 1689 / 1749) 1811) 1974) 1939] 2005 | 2074 5 | 1685 | 1762 | 1842 | 1925 | 2011 | 2.100| 2.192 | 2288 | 2386 | 2.488 6 | 1870] 1974) 2082) 2105] 2913) 2496] 2565 | 2.700| 2840 | 2.006 7 | 2076) 2211) 2959 / 2602 | 2660/ 2826] 300 | siss| sa79 | 9583 8 | 2905) 2476) 2658) 2853) 3059 | s278| ssn | s750| 402 | 4300 9 | 2sss| 2773) 3004 | 3252| ssie| aos) 4108| 4495] 4785 5.160 10 | 2899 | 3106 | 3305 | 3.707 | 4046 | 4411 | 4.907 | 5.24 | 5.605 | 6.102 ni | 9152) s479 | 9806 | 4926 | 4052 | 5117] 5024] 6176 | 6777 | 7.490 12 | 3498 | 3896) 4395 | 481s | 5.350] 5936 | 6580) 7288 | 8.064| 8.916 13 383} 4363 | 4898 | 5492 | 6153) 6886 | 7699 | 8599] 9.596 | 10.699 14 | 4310/4887 | 5535 | 6.261 | 7.076 | 7988 | 9.007 | 10.147 | 11420 | 12839 | 4765 | 5474 | 6254 | 7438 | 8137 | 9.266 | 10539 | 11974 | 15.590 |_ 15.407 16 | 5811] 6190) 7067 | 8137 | 9.358 | 10.748 | 12530 | 14129 | 16172 | 18488 a7 | 5895 | 686s | 7986) 9.276 | 10.761 | 2468 | 14.426 | 16672 | 10.244 | 22,186 1s | 6544 | 7690) 9024) 10575 | 12975 | 14.463 | 16879 | 19673 | 22901 | 26623 1s | 7263 | seis) 10197 | 12056 | 14282 | 16.777 | 19.748 | 25214 | 27.252 | 31.948 20 | sos2| 9646 | 11523 | 13.743 | 16.367 | 19.461 | 23.106 | 27.393 | s2.4z9 |_ 38.338 25 | 13.685 | 17.000 | 21.231 | 26.462 | s2o19 | 40874 | 50.658 | 92.669 | 77.983 | 95.296 30 | 22092 | 20960 | s9.16 | 50950 | e6.aiz | 85.350 | 111.065 | 143.371 | 184.076 | 297.576 1.8No.{ for CAICWA & MECICEC MASTER MINDS n | 21% | 22% | 29% | 24% | 25% | 26% | 27% | 26% | 29% | 30% 1 1zi0/1220[ 1230/1240] 1250/ 1260/ 1270| 1.280 ~~ 1.800 2 ise4| 14s8/ 1513| 1598] 1562] 1588| 1613) 1638| 1664] 1.690, 3 ura} 1816) 1861] 1907} 1958] 2.000| 2048) 2097) 247] 2.197 4 2144] 2215/ 2289] 2a64| 2441| 2520] 2601| 2684) 2769| 2.856 5 2so4| 2703| 2815] 2392] sosz} ai76| sa04/ 436) 3572) ana 6 z 8 aiss| 3297| s463| 3.635] 3.815] 4.001| _4.106| 408| 4.608) 4.827 3797] 4023] 4259 [ 4508] 4768] 5.042] 5320] sez0| 5945, 6.275 4595] 4908| 5239} 5590| 5.960] 6.953) 6.767| 7.206| 7.669) 8.157 9 5560} 5987) 6444] 69s1| 7.451] 8.004| 8.595| 9.223| 9.803 10.604, wo | 6727| 7905] 7926| _ss49| _9313| 10.086| 10.915| 11.806 | 12.761 | 13.786 u | sido] soi2/ 9749] 10657] 11612] 12.708] 13.862] 15.112] 16.462] 17.921 12 | 9850) 10872} 11901) 19215] 14552) 16.012| 17.605] 19.843) 21.236| 23.298 13 | i918] 19264] 14.749) 16986] 18.190) 20.175] 22.959] 24.759| 27.995 | 90.287 u | 14421] 16182] 18:141| 20919] 22.737| 25.420| 28.395] 1.961) 35.339 39.373 15_| 17449 19742] 22.514| 25.196| 28422 a2.090| 36.062| 40.505 | 45.587 | 51.185 16 | 2113] 24086) 27.446) 31.243| 35.527| 40.257| 45.799] si.923| s8.808| 66.541 av | 25547] 20384] 33.758) 38.741 44409) 50.850] 58165] 66.461) 75.862] 96.503 1s | s0s12| 35848] 41523) 48039] sssi1| e4.071| 73.869| 95.071) 97.962| 112.454 io | 37404] 49.735] 51.073) 59.568] 6as89| 90.720) 93.813| 108.990) 126.242| 146.190 20 | 45258| s2.957| 2.20| 73.964| 96.736| 101.720 119.143| 139.980 | 162.852| 190.047 25 | 117988] 144207| 176857] 216542| 264.698] 323.040] 393.628| 478.905) 581.756| 705.627) 30 | 304.471] 389.748] 497.904 | 634.820 807.798 | 1025.904 | 1800:477 | 1645.504 | 2078.208 | 2619.937 ‘Table A.2: Compound Value of an Annuity ie, CVAF,») Period a 1% 2% 3% a 5% 0% 7% 8% 10% 1 1,000 | 1.000 | 1.000 |” 1.000 | 1,000 | 1.000 | 1.000 | 1.000 1.000 2 2010 | 2020 | 2030 | 2040 | 2050 | 2060 | 2070 | 2.080 2.100 a 3030 | 3.060 | 3001 / 3122 | 152 | sist | 9215 | 3.246 ss10 4 4060 | 4122 | 4184) 4246 | 4310) 4375 | 4440 | 4.506 4641 5 ior | 5204 | 5309 | 5416 | 5526 | 5697 | 5.751 | 5.867 6.105 6 eis2 | 6308 | 646s | 66sa | 6802 | 6975 | 7153] 7.396 76 7 za | 7494 | 7662) 7898 | 8142 | sso4 | sess | 8.929 9.487 8 a2as | sss3 | agoz| 9214 | 9549) 9.907 | 10.260 | 10.637 11.436 9 9369 | 9.755 | 10.159 | 10588 | 11027 | 11491 | 11978 | 12.448 19.579 10 | 10462 | 10.950 | 11464 | 12.006 | 12578 | 19.161 | 13.816 | 14.487 15.937 ur | 11se7 | 12169 | 12.808 | 13.486 | 14207 | 14972 | 15.784 | 16685 18.581 12 | 12683 | 13.412 | 14.192 | 15.026 | 15917 | 16.870 | 17.888 | 18.977 21.984 1s | 13809 | 14680 | 1561s | 16627 | 17.713 | 18882 | 20.141 | 21.495 24.523 a4 | 14947 | 15974 | 17.086 | 18292 | 19.599 | 21.015 | 22.550 | 24215 27.975 15_| 16097 | 17293 | 18.599 | 20.024 | 21579 | 23.276 | 25.129 | 27.152 aur 16 | 17.258 | 18639 | 20.167 | 21.825 | 23.657 | 25.673 | 27.888 | soaze 86.950 ar | 18430 | 20012 | 21.762 | 23698 | 25.840 | 28213 | soso | 93.750 40.545 as | 19615 | 21412 | 23414 | 25645 | 28.132 | 30906 | 33.999 | 97.450 45.599 19 | 20811 | 22841 | 25.217 | 27671 | 30539 | 33.760 | s7a79 | 41.446 51.159 20_| 22019 | 24297 | 26870 | 29.778 | 33.066 | 36.786 | 40.995 | 45.762 37275 25 | 28243 | 32.030 | 36459 | 41646 | 47.727 | 54865 | 63.249 | 79.106 98.347 30 | s47a5 | aos6s | 47575 | 56.805 | 66az9 | 79058 | 94.461 | 113.283, 164.494 CA Inter_42.5e_1 .M. (P)_ Time Value of Money. 19Ph: 98851 25025/26 www.mastermindsin ‘Table A.2: Compound Value of an Annuity £e., CVAR, Period » | 1% | 22m | sam | 1% | 15% | 26% | 2% | 10% | 19m |’ 0m T] 2000) 1.000] 1.000) 1.000] 1000} 1.000 i.600] i000] 2.000 | 2000 2 | auo| 2120) 2130] 2140] 2150 2160| 2170] 2180| 2190) 2.200 3 | aaz| sara] s4o7| 3440] 3473| 3.506 3.599| asr2| 3.600, s.640 «| 4mo| 4770| 4850/ 4921) 4903] 5.006] s2a1| s215| 5.201| 5.68 s | a28| 6953| sao) so10| s72| corz| rora| ras] z297| r4uz 6 7 8 8 7913 | 8i15|~ sams | 8500 | 8754) 8577 | 9207] 9442 | 9.683 | 9.930 9.783 | 10.089 | 10405 | 10.790 11067 | 11414] 11772| 12142] 12528} 12916 11ss9 | 12300) 12.757} 19233 | 13.727 | 14240) 14.73| 15.327 | 15,902 | 16499 14164 | 14.776 | 15.416 | 16085 | 16.786 | 17.518 | 18285) 19.086 | 19923 | 20.700 10 | 16722 | 17549 | 18420 | 19337 | 20904| 21321 | 22393 | 23521 | 24709 | 95.959 ir | 19561 | 20655 |2iela | 28.004 | 24349 | 5733 | 27200 | 98.755 | 30.404 | 92.150 az | 22.713 | 24193 | 25.650 | 27271 | 29.002 | 30850] s2s21| 34921 37.180 | 99.580 as | 26.212 | 28.029 | 29.985 | 32089] s4352| 36.786 | 30.404| 42219 | 45244) 49.497 a4 | 30.095 | 32.993 | 94.883 | 37.581 | 40.505] 43.672 / 47.103 | 50.18 | 54981) 59.196 as_| 24.405 | 37.280 | 40.417 | 43.842 | 47.580 | 51.660 | 56.110 | 60.965 | 66261 | 72035 36 | 39.100 | 42.755 | 46.672 | 50.980 | 55.717 |~G0925 | 65.649 | 72999 | 79.850 | a7.442 ar | 44501 | 48984] 53.739] 59.118 | 65.075 | 71.673 78.979 87.068} 96.022 | 105.931 1s | 50.396} 56.750] 61.725] oaas4| 75.836 | 84141 93.406 | 103.740 | 115.266 | 128.117 19 | 56.999 | 69.440 70.749 | 78.969 | 88.212 | 98.603 | 110.285 | 123.414 | 138.166 | 154.740 20 | 64.203 | 72.052 | so.s47 | 91.025 | 10244 | 115.380 130.038 | 146.628 | 165.418 | 186.688 25 | 11aais | 135-934 | i56620 | TBLSTI | PZT] BaSzis | zo2I05 | saz603 | 402.042 | 471.981 30 | 199.021 | 241.333 | 292.199 | ase.7a7 | 434.745 | 530.321 | 647.439 | 790.748 | 966.712 | 1181.982 ‘Table 2 : Compound Value of an Annuity ie, CVAFs, =) Period n | 2m | 22% | 29% | 24% | 25m | 26% | 27% | 2am | 29% | 30% 1 1.000[" 1.000] 1.000] 1.000] 3.000{ 1.000] 1.000) 1.000 1.000 1.000 2 2210/2220) 2.290] 2.240) 2.250] 2.260] 2270] © 2280/2290] 2.200] 3 674] 3.708] 3.743] 3.778 3.13) 3843) 3.885] s918| 3.954] 3.990 4 5.446] 5.524] 5.604 5.684] 5.766) 5848) 5.991) 6016] 6.101] 6.187 5 7589| 7.740] 7.893|__g04s|_8207| 8368, 8.533, 8.700.870) 9.049 6 | toss] so442| 10.708/ 10.980] 11.259/ 11.544] 11.697| 12136] 12442] 12,756) 7 | sssa1} 1s740] 147i] 14615] 15.073] 15.546) | 16.032| 16.634] 17.051] 17.589] 8 | sais} 17762] 18490/ 19.123] 19.842] 20588) 21.361| 22.163| 22.905] 23.858] 9 | 274} 22670] 23.609] 24712] 25802] 26.940) 28.129 29.369| 50.664] 92.015 10 | 27274] 26657] 30.113] 164s] 38.255] s4.045| 36.723| saso2| 40556] 42.619 ui | 34001] 35.962] 38.039] 40.298| 42566) 45.030| 47.699/ 50.399] 53.918] 56.405 12 | 42asi) 4473] 47.787] 50.985| 54208) | 57.798| 61.501 65.510 69.760 74.326 13 | 51901] 56.745] 50.778] 64.110] 68.760] 73.750] 79.106 e4.853| 91.016] 97.624 14 | 63.909] 69.009 74.528] 80.496) sa.949) 99.925 101.465) 109.612| 18.411] 127.912! 15_| 78.930] _5.191| 92.669] 100.815, 109.687, 119846] _129.860|_141.503|_153.750| 167.285] 16 | 95.779] 104993] 114.983) 126.011] 198.109] 151.375/ 165.922] 181868) 199.37| 218.470 17 | 116892] 129.019) 142.428) 157.255] 173.636] 91.733] 211.721) 289.701) 258.145) 286.011 18 | 142.439] 158.403] 176.187| 195.994] 218.045) 242.583] 269.885, 900.252) 394.006 371.514| 19 | 173.351] 194.251] 217-710] 244.033] 273.556) 308654] 949.754) 985.923 491.868) 489.968) 20 | 210.755] 297.986] 268.783] 303.601] 342.945] 987.984] 497.568| 494.213, 558.110 630.157, 25 | 554.230] 650.944] 764.596) 898.092| 1054.791) 1238.617| 1454.180| 1706.803| 2002.608) 2348.765) 30 | 145.111] 1767.044] 2160.459] 2640.916] 3227.172| 3941953] 4812.891| 5879.231] 7162.785| 8729.805) CA Inter_42.5e_F.M. (P)_ Time Value of Money 1.10No.{ for CAICWA & MECICEC MASTER MINDS ‘Table A.3 : Present Value of a given Amount ie. PVFe.w Period a 1% | 2% 3% M% 5% o% 7% | 8% 9% | 10% 1 ‘0990 | 0980 | 0971 | 0962 | 0952 | 0943 | 0935 | 0926 | 0917 | 0.909 a 0980 | 0961 | 0.943 | 0925 | 0.907 | 0.800 | 0873 | ogs7 | 0.842 | 0.826 3 oom | 0942 | 0915 | oso | 0964 | os4o | oi6 | 0704 | 0.772 | 0.761 4 0961 | 0924 | 0889 | 0885 | 0.823 | 0.792 | 0.763 | 0.735 | 0.708 | 0.683 5 o951_| 0906 | 086s | 0822 | o7es | 0747 | 0713 | oss | 0.850 | 0621 6 7 8 9 0942 | 0.888 | 0838 | 0790 | 0.746 | 0.705 | 0666 | 0630 | 0.596 | 0.566 0933 | osm | oss | o760 | 0.711 | 0665 | 0623 | os83 | osa7 | 0513 oga | oss | o7s9 | o7m1 | 0677 | o627 | ossz | 0540 | 0.502 | 0467 oma | o8s7 | o766 | 0703 | 064s | 0592 | 0544 | 0.500 | 0.460 | 0424 10 | 0905 | os20 | ors | o676 | os | 0558 | 0508 | o4s | cana | ones 11 | 0806 | ~osos | 0722 | oas0 | 0585 | 527 | 0475 | 04s | sae | 02s w | oas7 | ores | o7or | oes | oss7 | o4g7 | ose | 0907 | ose | ono 1s | osm | ova | oss | ocr | 0590 | o4so | o4is | oes | 0225 | 0290 u | os7o | 07s | oss: | os77 | 0505 | ous2 | ones | oss | o200 | ozss 15_| ose: | 079 | oss | sss | casi | oat7 | o262 | oni | 0275 | o2s0 16 | 0853 | 0728 | 0620 | oss4 | case | 0994 | 0290 | o2e2 | o2so | one 1t | osm | om | 0605 | oss | o4se | os | 0217 | 0270 | o2m | ox9s 18 | 0896 | 0700 | oss7 | o4ss | o41e | 0.250 | 0296 | 0250 | oz2 | 0:80 19 | 0828 | oss | os7o | o47s | 0396 | oa | 0276 | ozs | oss | 0164 20 | os | os7a | osse | o4ss | 0277 | oai2 | o2ss | o2is | oa7e | 0149 25 | o7a0 | asi0 | oa7a | o31s | 0295 | ose 0146 | 0.116 | 0092 30 | o7a2 | oss2 | o412 | oscs | oz | o17s | 0131 | 0.099 | 0.075 | 0.057 ‘Table A.3 : Present Value of a given Amount ie. PVF...) n um | 12% | 19% | 14% | 15% | 16% | 17m | 19% | 19% | 20% 1 | 0901 | o8es | oss | oa77 | oro | oasz | 086s | osa7 | o8ao | 0893 2 | osi2 | 0797 | 0783 | 0.769 | 0756 | 0743 | 0.701 | ome | 0.706 | o6o 3 | or | 072 | 0693 | 0975 | 0658 | o6si | 0624 | 0.609 | 0599 | os79 4 | 0659 | 0636 | oe1s | 0592 | os72 | 0552 | 0534 | os16 | o499 | o4se 5__| 0893 | 0567 | os4s | osts | 497 | cave | ote | o4s7 | o4i9 | 402 6 1 8 9 0535 | 0507 | 0480 | 04568 | 0432 | 0410 | 0390 | 0.870 | 0882 | 0335 o4s2 | 0452 | 0.425 | 0.400 | 0376 | 0354 | saa | asia | 0296 | 0279 4s | 40s | 0376 | 0351 | 0327 | 0.305 0268 | 0249 | 0233 og | ose: | 0333 | oa08 | o2ss | o263 | 0243 | 0.226 | 0209 | 194 1o_| 0352 | oa%2 | 0295 | o270 | o247 | o227 | 0208 | ost | 0176 | 162 ui_| oai7 | 0287 | 0261 | 0237 | 0215 | 0195 | 0178 | 0162 | o148 | 0195 12 | 0286 | 0257 | 0231 | 208 | o1s7 | 016s | o.s2 | o137 | o124 | o1n2 13 | 0258 | 0229 | o204 | 0.182 | 0163 | 0.145 | 0.130 | 0.116 | 0.104 | 0.098 14 | 0232 | 0205 | 0181 | 0.160 | 0141 | 0.125 | 0.111 | 0.099 | 0.088 | 0.078 15 | 0209 | 0183 | 0160 | 0140 | 0123 | 0108 | 0.095 | o0ss | oo74 | 0.065 is | 0188 | o163 | o14i | 0123 | o107 | 0093 | 0081 | o071 | 0062 | 0054 wr | 0170 | 0146 | 0125 | 0.108 | 0.093 | 0.080 | 0.069 | 0.060 | 0052 | 0.045 1s | 0153 | 0139 | 0111 | 0.095 | 0081 | 0.069 | 0.059 | 0.051 | 0.044 | 0.038 19 | 0138 | 02116 | 0.098 | 0.033 | 0.070 | 0.060 | 0.051 | 0.083 | 0087 | 0.081 20 | oazs | oaos | 0087 | 0073 | 0.061 | 0.051 | 0.043 | 0.037 | 0.091 | 0.026 | 25 | oo7 | 0059 | 0047 | 0038 | 0.030 | 024 | 0020 | 0016 | 0013 | 0.010 30 | 0044 | 0.033 | 0.026 | 0.020 | 0.015 | oo12 | 0.009 | 0.007 | 0.005 | 0.004 CA Inter_42.5e_1 .M. (P)_ Time Value of Money. aadPh: 98851 25025/26 ‘Table A.B : Present Value of a given Amount ie. PVF.» www.mastermindsin Period n_ | 2% | sem | 23% | em | 20m | 26% | 2mm | 20% | 208 | 30% 1 | 0826 [0820 | sis | 0808 | 0800 | 0794 | o7e7 | o7a1 | 0775 | 0.769 2 | sss | o672 | 0661 | 0.650 | 0640 | 0630 | 0620 | ost0 | 0601 | 0502 3 | ose | 0551 | 0537 | 0524 | os12 | 0500 | o4ss | 0477 | 0466 | 0.455 4 | ods | 0451 | 0437 | 0423 | 410 | 0397 | osss | 0373 | 0361 | 0.250 5__| sss | 0370 | 0365 | osu | 0328 | osis | oscs | a2 | 0280 | 0.269 6 | sie | 0303 | 0.289 | 0275 | 0262 | 0250 | 0238 | 0227 | 0.217 | 0207 7 | 0263 | 0249 | 0235 | 0222 | o210 | 0198 | 0188 | 0.178 | 0168 | 0.189 8 | oats | oa | 0191 | 0179 | 0163 | o1s7 | ods | 0.199 | 0.130 | 0.129 9 | 0180 | o167 | 0185 | os44 | o1s4 | 0.125 | ote | 0.108 | 0.101 | 0.094 1o_| oas9 | 0137 | 0126 | oa16 | 0107 | 0.099 | 0.092 | 0.085 | 0.078 | o.07s 11 | ozs | o12 | 0108 | 0.096 | 0088 | acre | oa72 | 006s | 00s | 0.056 12 | 0202 | 0092 | 0083 | 0.076 | 0.069 | 0.062 | 0.057 | o.0s2 | 0.047 | 0.048 13 | 0.084 | 0.075 | 0.068 | 0.061 | 0.055 | 0.050 | 0.045 | 0.040 | 0.087 | oss 14 | 0069 | 0062 | o0ss | 08 | oot | 0039 | 0035 | o0s2 | 002s | cas 15 | 0.057 | 0.051 | 0045 | 0.040 | 0.035 | o0s1 | 0.028 | 0.025 | 0022 | oo20 | 16 | 0087 | 0.02 | 0036 | 0.032 | 0.028 | 0025 | 002 | oo19 | oo17 | 0.015 17 | 0.039 | 0.08 | 0.030 | 0.026 | 0.023 | 0.020 | om7 | 015 | 001s | oor 18 | 0082 | 0.028 | 0024 | 0021 | oois | oo16 | oo14 | oo12 | 0.010 | 0.009 19 | 0027 | 0.023 | 0020 | 0.017 | oo1s | oo12 | 01 | 0.009 | 0.008 | 007 20 | 002 | oo | oor | oor | o.or2 | oor0 | 0.008 | o.007 | 0.006 | 0.005 25 | 0.009 | 0.007 | 0006 | 0.005 | 0.004 | 0.003 | 0.009 | 0.002 | 0.002 | 0.001 30 | 0.003 | 0.003 | 0.002 | 0.002 | 0.001 | 0.001 | 0.001 | 0.001 | 0.000 | 0.000 ‘Table A.4 : Present Value of a Future Annuity ic, PVAR, » Period ] | n wm | 2% | 3% | 4% | s% | ox | mm | oe | 9% | 10% | 7 0980 | 0980] a7 | 0962] cvs2| oss) oss | 0926 | osi7 | 0.209 | 2 1970} 1942] 1919] 1986} 1859] 1999) 1763] 1783] 1759) 1.796 3 2941 | 28s4| 2829] 2775) 2723) 2673| 2624) 2577) 2531) 2487 4 sgo2| sao | a7] s6a0| sds | 3465) ssiz| 3512) 3240 3.170 5 4as3| 471s | 4580 | 4452 | 4329 | 4212 | 4100 | 3.999 | 3.890 | 3.791 6 5795 | 5601 | 5417] 5202 | s076| asi7| 4767] 4623 | 4as6 | 4255 7 6728 | 6472 | 6230] 6002) 5.789 | 5s82| 5389| 5.206 | 5.033 | 4868 8 re52 | 7326 | 7020] 6733| 6463 | 6210| sev | 5.747| 5.535 | 5.395 9 ses | sica| 7.796] 7435| 7108} 6802 | 6515] 6247| 5995 | 5.759 so_| sai | ses | 8590 | a1 | 7722 | 7360 | t024| 670| sais | 6.45 a_| 10368 | 9787 | 9.253 | 8760 | 8306 | 7887 | 7499 | 7.139] 6.005 | 6495 12 | 11255 | 10575 | 9954] 9385 | sa6s| sss) 7943 | 7536] 7161 | 6814 as | 12434} 11348 | 10635 | 9986} 9304 | sass | sass | 790¢| 7487 | 7.103 4 | 13004 | 12.106 | 11296 | 10563 9990] 9295 | s746| s2as| 7706 | 7.2967 35_| 13.865 | 12849 | 11938 | 11118 | 10380 | 9712 | 9.108 | 8.560 | 8061 | 7.606 36 | 1478 | 19578 | 12561 | 11652 | 10898 | 10106 | 9447 | e851 | aia | 7824 at | 15562 | 14202 | 13166 | 12160 | 11274) 10477 | 9.763] 9.122 | 9.544 | 002 | 18 | 16888 | 14992 | 18.754 | 12659 | 11.690 | 10828 | 10.059] 9372| 8756 | 8201 19 | 17226 | 15.679 | 14.924 | 13.134 | 12085 | 12.158 | 10336 | 9.604 | 8950 | 8.365, 20 | 18.046 | 16.352 | i4e7s | 13.500 | 12462 | 11.470 | 10504 | sis | 9.129 | 8514 25 | 22.028 | 19524 | 17.413 | 15.622 | 14004 | 12.783 | 11654 | 10.675 | 9.823 | 9.07 30 | 25.808 | 22397 | 19.01 | 17.292 | 15973 | 19.765 | 12.409 | 11.258 | 10.274 | 9497 CA Inter_42.5e_F.M. (P)_ Time Value of Money 1.42No.{ for CAICWA & MECICEC MASTER MINDS Table A : Present Value of a Future Annuity ie, PVAF i, ») Period m [um | ae | oe | ae | soe | toe | are | oe | oe | aon 1 aoor | oaee | oaae | oarr | oaro | een | oss | vac | caso | oass 2 | ams | r600 | tees | reer | sas | ros | see | ase6 | sir | i 3 | zu | 2uoe | zoe | aaez | 22s | aau | azio | 2am | 210 | 2106 «| aioe | sosr | 2ore | aor | 2ass | arm | 270 | 2050 | 200 | 2500 ¢] azn | aim | sous | aaa arse] seas ans] sas) awio aan 5 | sus | toes | cro | Go | caer | ceee | arr | ore | ase | sssr o | scar | som | siz | cou | arm | coor | ast | soo | ates | con wo | sees | soso | suas | sas | soi | case | acco | cao | aso | aie i 6.207 5.938, 5.687 | 5.458 5.234 5.029, 4.836, 4.656, 4.487 4.327 2 | eaoa | eave | sors | soso | san | saor | aces | aro | aon | aso s_| tam | con | saz | cruz | saer_| sors | sam | sooo | aero | aot 6 | taro | cor | esor | ease | ost | seen | ace | e1so | 400s | 4700 xt | to | ra20 | sz | car | sox | srw | sats | camo | 4000 | arts 8 | z200 | ras0 | caw | cas | ors | ses | san | caro | coos | aoe 0 | t000 | ro6e | sacs | seo | aoe | ser | sass | saie | com | asi 20_| aes | taco | toas | cos | caso | somo | soos | sano | sam | asro 2 | eae | rea | ta00 | ears | asi | soot | sree | e457 | eios | 4508 a Table Ad Present Valoo of Future Annulty be, PYAFom Period ] ] n | 2m | 2am | 20m | oem | 25m | zon | orm | 20x | 20m | a0 1 | 026 | 0820 | o8is | o#06 | 0800 | o794 | o787 | 07m | 0.775 | 0769 «| asi0 | aioe | aus | 2c | 29e2 | asa | 2360 | 220 | 2200 | aiee =| 20s | 2ace | soos | ares | sono | ass | aces | aese | ness | asso 2 | Scos'| azee | seta | some | sem | ame | ase | asc | amo | cme | 10_| 4054 | 3923 | 289 | 2602 | 3570 | s4cs | sca | 209 | save | 002 | 11] 4477] 4095] 3.902] 8.76 | 3.056 | 35a | 407 | 3935 | aga 9147 12 | 4273 | 4127 | 3905 | 2851 | 2725 | 606 | suc | aae7 | ozs | 2.100 13 | 4362 | 4203 | 4053 | sei2 | 3.780 | ses6 | sss | s4a7 | ss22 223 | 14 | 4492 | 4265 | 4103 | 2962 | 3024 | 3605 | ss7o | 40 | san. a2 | 15_| 4489 | 4215 | 4159 | 4001 | 2.850 | are | 601 | a4ea | 972 | o268 16] 4596} 4257 | 4289 | «oss | aa7 | a 761 | sea | 503 | 3.003.253 vw | 457 | 4am | azo | 4059 | ami | a7n | sea | amis | aoa | s205 18 | 4008 | aio | 4243 | 4060 | 3925 aoss | 9529 | 3413 3911 19 | 4095 | 4442 | 4263 | 4007 | 2942 acca | 2590 | a4 aan a0_| 4057 | 4460 | a7 | ano | 2954 acta | ase | a4a7 | 3316 | 25 4721 4514 4.323, 4147 | 3.985 ‘3694 3564 aaz | 3.829 so | 4745 | ass4 | 4399 | 4160 | a9s5 azo1_| aseo | aae7 | sac2 THE END Copyrights Reserved ‘To MASTER MINDS, Guntur .M. (P)_ Time Value of Money. CA Inter_42.5e_1 1.13