Q.1 Mr. A invested a sum of Rs.

4,50,000 at the beginning of the year at the rate of 5%

What is the amount that he will get after the end of 4 years?

Answer

Q.2 Ajay invests Rs. 5,00,000 for 8 years at the rate of 10%. Calculate the future value
end of 8 years.

Answer

Q.3 Calcualte future value if Mr. A invested Rs. 10,000, Rs. 5,000 amd Rs. 7,000 at the
3rd year. Calculate the compounded value of his investment at the end of 3rd year w
at the rate of 10% compounded annually.

Answer
Q.4 Darsh has invested Rs.10,000 now for 3 years at the interest rate of 12% per annu
Find the amount he will get after 3 years. Also calculate the future value if compound
(i) semi-annually, (ii) quarterly, (iii) monthly.

Answer

Q.5 Seema wants to invest in an investment opportunity that will give her Rs. 1,00,00
10 years with a rate of return of 9%.

Answer
Q.6 Mr. Shiv wishes to calculate the present value of the annuity consisting of a cash
per year for 3 years. The rate of interest he can bear is 10%

Answer

Q.7 Mr. Arvind raised a loan of Rs. 3,00,000 from a bank at an interest rate of 10% for
be repaid in 5 equal instalments. Calculate the size of the intalment.

Answer
 TIME VALUE OF MONEY PRACTICALS

PRESENT VALUE -450000

NPER 4
RATE 5%
PMT 0

FUTURE VALUE ₹ 546,977.81

PRESENT VALUE 500000

YEAR 8
NPER 8
RATE 10%
PMT 0
FUTURE VALUE 1071794 1071794.405

Rate 10%
Year Cash Inflows Amt. inv. for years Future Value
1 10000 3 13310
2 5000 2 $6,050.00
 3 7000 1 $7,700.00

Future Value at the end of 3rd Year 27060

m 2
Annually Semi-Annually
Present Value -10000 -10000
ROI 12% 12%
Effective ROI 12% 6.00%
Years 3 3
NPER 3 6
Future Value 14049.28 14185.19

FUTURE VALUE -100000

NPER 10
RATE 9%
PMT 0
PRESENT VALUE 42241.081 42241.08
FUTURE VALUE 0
NPER 3
RATE 10%
PMT -10000
PRESENT VALUE 24868.52 24868.52

PRESENT VALUE -300000

NPER 5
RATE 10%

PMT 79139.244 79139.24

EY PRACTICALS

13310
6050
 7700

27060

4 12
Quarterly Monthly
-10000 -10000
12% 12%
3.00% 1.00%
3 3
12 36
14257.609 14307.69