UNIVERSITY OF ASIA PACIFIC

Department of Business Administration

Program: MBA
(Fall 2023)
Course Title: Mathematics for Decision Making (MSC 501)
Assignment on Mathematic of Finance
01. Mr. Tanvir will deposit Tk. 5000 at a bank today. What will be the value of his money after 3
years at an interest rate of 10%?

02. Mr. Hasan wants to receive Tk. 10000 after 3 years. If rate of return is 8%, what amount of
money to be deposited by him today at a Bank?

03. Mr. Amit wants to receive Tk. 10000 after 8 years by depositing Tk. 4000 today. What
should be the rate of return?

04. Mr. Helal wants to receive Tk. 20000 by depositing Tk. 10000 today. If the rate of return is
7.5%, how long does he need to wait?

05. Mr. Obaed will deposit Tk. 8000 at a bank today. What will be the value of his money after 5

years at an interest rate of 10% compounded half-yearly?

06. How many years will you need to double your money at an interest of 11.5%?

07. What is the required rate of return to make your money three times in 10 years?

08. Mr. Joy will deposit Tk. 5000 at the end of every year at a Bank for 3 years. If the interest
rate is 10%, what will be the value of his money at the end of 3rd year?

09. Mr. Shahin will deposit Tk. 5000 at the beginning of every year at a Bank for 3 years. If the
interest rate is 10%, what will be the value of his money at the end of 3rd year?

10. Mr. Zia is expected to receive Tk. 1000 at the end of every year for next three years. What is
the PV of all his future receipts if required rate of return is 10% ?

11. Mr. Partho is expected to receive Tk. 25000 at the beginning of every year for next three
years. What is the PV of all his future receipts if required rate of return is 10%?

12. You have taken a loan of Tk. 50000 today from a bank. You want to repay the loan by 4
equal annual year-end installments. If interest rate is 10% what should be the installment
amount?

13. Mr. Walid will deposit monthly Tk.2000 at Midland Bank for 5 years. Yearly interest rate is
15%. Calculate the future value of Walid’s total deposits if the payments are made at the end of
the month. Also calculate the future value if payments are made at the beginning of the month.
Write your understanding about annuity due and ordinary annuity pointing on this question.