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—
a
Time Valve of Money t= ‘oe aes
| __ — SS
Sinners oe
«Fine out- +he _iaterest —_anel_ tote. _ amount of
, - 4 years _@ of 12" on the _
| basics — of Simple interest. _____
we T= PNR 2 oe 3
Az P(1+NR) -
tohere $ —
4 P= Principle amount. =
R= Rate of - interest ee
T= Interest Rete -
N= No.of > spears. ersfe) Mx will get 13,400 Rs after 5 years @
—
of 12% cn the basis of Simple __interest
|yo are» tequitel = #0 fined. out th * Prioeiple
amount -
A= PC 1+NR)
| B,uoo - PC 1+ 65x0-121)
|.13,uv0 = P C4-6)
— Compouneling. —Tnteresti- io _siet
Bia > / Ap Pftoey fii 2
Heil yorwly =y A= PC i
Wo Sa=\ P Cit r
apr (2DOMs
(4) Mr. A hes cleposited 5.4000 Bru years @_
ouk
after
eb of 2h. “Fine!
PB waillon receive
the
4 yeews 00. the» basis
__ -0F___cempouneling interest:
_ Gnnwally, half yearly quarterty — and _ menthiy.
amount that
he.
Tf - ioterest__is — given
ty Acs TT
can 2
\" xy
| Hole - yearlyt. A = 4000 (i+ 0.01)"
Degg tl a4 + d Avy
ie
OS.
2 £ 1 f ee
A = 4000 (4+ oie TA= 164° x yooom
be D647
ee ec ——A) Mee fos aleposited Rs. 2000- every _ “year @
Bde eens Interest. find -ovk the
that _he will receive. after
FEVALSEAPAGEV TFA) An 2 4
pea Leer 049 /_. —_
[vas done C£vzFAlan 5 Toole: An
2200 °C 5.965) jDOHs
fa __ Fan undlerstuneling purpose
elias met
| Beginning - Ending
BIrl2-13 3 4
B1=12-19 2
Bi=I2-21_ > 4
Sis. - 22 ~Unequal Arnount t-
(2) M.A deposited! Certain amount » in bank fr
5 years @ of 12% Compouncting _ interest.
__| Years Amount A
eee tN -¥ pon = 5
Seeks. 08 eo oaks Asin
— 3+, 18 6000
eee 4 SR OOD
2 Ewe s 2,000 = = ee
boil receive
S| ___clepasitee! the =
——_| Omount af the enc! of Jno - e
= va 2 A Cia tC Blt
Py (ttn) + Ps C14)" ; ;
2 19000 C[+ o.l2)! +t s00(1 + 0.12) =
Firel__out the amount that_—_he‘ POMS rage rc
“vy Present veilve = Discounting Valve Cwer
x Resent value or Disco Discounting, Valve +-
é) find out the present veilve of Rs 80,000
“receivable offer 3 yes @ of 40%.
—= | Cone - time money 1eceive)
| Annually $-
|
Oe Aa Pe A (PVEP In A.3
Beis} tx)?
+ 20,000 (PVEF) 10%, 3
15,020 _| DOHT | rae no, =3%) Unequal Armounti-
Method: 2 SL
Method: 2
Eee ashe fe +
Cy See “tara — Choo!
4 eee
© company -_and__inflation reife: _is_{0 le. -Finel_ovk-
the __present_value of totes! _cimount. —___Method #2.
(2) Me A cepesited
“| @ 10% after
get double
Rs.10,000 in fixed _cleposit
how many years he _ oo’)
amount. (G1TU_sum)
Years +0
ckvble| = O35 46-9 + 0.25 wlb
= 42S. SBE
+yeors X _BMonths
|
| = a
ea Loan - Amortization i Lowes E
(4), Mr A borrowed — 5. 10000. @ 9%. fem ithe SBL~_
& he will repay his: Lamount. in 3. equally
“installments fr__-3_ yeaxs. —_ Finel._ové the. equally —
“installments amount also. prepeirefoan — amortization
- acheclole. __ CAnnvally pd
Loci Amount.CA) +P. CPvIFA) rin Denim
al 10,000 = PCPVIFA) 3, 4%
od ayet Joao0 —1Pxee? 52) aes
gor Pst 28000000 veep * ane pas| Gru 4um
| Mina is bosstowaing — Rs.
5,09000 4 by &
house. Tf She pays @qual__ installment fer
S-yeors and 9° iS __ Interest rate On
ovtsfandling balance. that 1s the amount of
annual investments. Nien a 2 “
A= PCPVIFA)r an act ee
500000 = P CPVIFA) 4h, 8 E
na PREPIFA) 5.535 s o ~
P2033 ole dneenn senile
Near 0.8 Rs Seite sie
0 Eobj000, = 5,00,000
“A 5,0qe00") Vagos tion sasy — &
Ree grey aang tL __ 4,05 262()
Mr.8 purchase a. laptop of — &8.80,000 “freA
Bajey finance @ IS. annvatly & fe will
IR EMI. Find out the amount of aay Payee
a
Ef) Os@128
[Creer] |
iil 0. O72 55
L-0.§6) _
0.012
_|___ 0,000 = A " 0.139 -|-
0.0[2S
Boj000- A (ll-!2)
Az Boe __- 2124. 2y|
|
|
|
|
|
—}- - an
(Month OB.Rs. EML © Int Rs. aaa As Rs, a
Oitaiooons Ss - - =... 89,000 J
1 $0,000 44 10D0 ety 43,806 ___
2 43,806 394 923 627] 64,535
Bo 63,5356 stay BUY 68 ean GIs
| 4 _61,1@5_ ~ “ 4ia4 _366) _6424__ 5 FEC
|S 54456 Igy KY «ESOS, 2G
: GUN ye 2ub “ays Go, 54 ees
‘. sige by hg W9G — 1521 \ B66F3 o55 34932
Ty 98D pun Wat | 6757 8.225
re 22 Hay «353 __ 684) 8, 84
10 £1,384. HIYy 64 6424 14, 4ST
44 14,U5F aiqy 16) ola F444
sayy say 93 HON 3u3_0*
80000 x |S %o __ 4.000. Rovnd_off
[2 crane
2thlvation of Bond, Rekrence
HE Nalection
A Bondi
©) Bond at. premivm = Coupon Rote >! Required Viele
Ss Olen gt _clistount = Capon Role. S Reed Yisld. hs oa 2
| apn Rate» Reborn or ee Sole ered
by the Company a Boa
Bone) at par = Coupon Raite: = Required Yield
& | ae 2 Gredh Beare “ote _o&
__________Grrent Interest _Rate_O/ Annwelly?-
Waa Cass: PVIFAnn +M x PVIF HM G 2
Q| n= 40 years
CRs 12".
PVs 1600 > Métocty valve -
Lt _=_b3sh.
651.12 + 295)
quo. 12 RsCR> (0'
nz & Z
P.R = (000 ‘
Ra 2% rma mt fA AO
Ps Cx CPVIFA) gun + CPVIF) Hun —
= (00 x CPVIFA) 271, 8 + ere im
= (00x 4.968 + (000 x0-4oy
> 496.8 + You os
| 2 900.8 .28 ag
Pe Cx CPVIEA) 1m + 1 CPV on
= Jox CPVIFA)\04 +®
Semi - Annvally =
os AS
P= Cx Coven) #12 + x Cpvirlse ron —a
ne __=—— : 4
csi) era
P= 00 va 3.408 4
m= 100 2 4
(PvIEA)4,16_ + 100-« Vip +9
6x dyuy + [00 63.339
56.68 + 323.9
2390-58 i i lee
penGR. js always on pax valve it clesnot,
have oy relction wrth market
value.
Yield to Maturity C2 marks Que)... bday
(Rokr) ee
Yield fo. [Meshriby tu is tholirelte aA ee
return _an__ investor earns on. 9 bond _fele/ _+il
oe Is the parameter whether» comeyinual pee
| should __invest__or_nof. A
0-4 M +0. 6x P
C= Annval Pes Bayneat ———
x ML foil vue —of he —Bal
| P= Pesent Valve = of ‘ba Choe
P>__10,800
_| Mz jp years, :
C= 0%. P.M. = 10, 000M,
Be _ OY x 1900 nea
YTM_=2 loo + (10.000 = 10,00) | to
6, 000+ 10,£00. +
= looo + (-8%) ry 92038
Yoon +E Y8O + __ jo, 480+Pe yre [reo rita |
Tides Cleo
Veeld to Call t- Cwithdrcno before time),
© Report.
LO. iyecis bord 6
Riri Wolve =1000 tomy keds
| Reecemeible valve | Motority value = 1050 ___
|Current Market fice .= 950) _ es
| No. of _ years 2 5 years. 7
Pewey rr 5] aie. aaiey | 42 1 =
lci+ ast ue tx sci \
‘ 950 = YT 100 i 1050 a)
_t +017! fron ees :
a ae 4
~ 950 = ‘1Te__L90. 41 651.934
2). wie =v
+ 950 = Tos anes oye
marc F508'® Gadont Growth Model | Gordon Model
Tero Gacenth — Hie a
VatuatroN OF SHARE I”
@ Zero Growth Mode!
ee Girewth__ Mode! e
Rice farning cPle] Muhtiple Potip =
‘The bese of valvekon is chuelenlice
f. Die = ise. 5 ae
ke oa ae
where 5 4 sae
P= Price of share
Dp = Lost _yeur dividend] Last clividend pay
Di = Next clvidend | to 2 be _ patel
(ke Gost of _etuity 0 _Rute_of_Retarn
Be AGG oe ral.
Do= 10@ Content 6 Models bass
Pspuepieee
Ke-4 2
Find _ovt the value
04) in PVE.
ne 5.® Varicble Growth _ Moclet t=
Q _Do-3 eh
| Yet 42.3 2 (10%. (On), y Be
Y-4 - 56 (G2) fad 4
| Kes IS‘ : bs oa
| Caleslation of _Divictend. states as
edict 26 ad ost '
iid #4 oan (06528632
72
Pe pyar Seo Wa =
SP: ton ate is Gein ao
Ke- 9 OuIS-0.05 X 0.658
Resent = 87.64 Rs value onwards
peat of she = Y-1. to “4-3 op YY
= 8. + BF.6yDOHT nets
Date t V
= GiTu_Sum i
Vis) Des 1) i ee
_ [ye Seteree 2 iota Cian ee
Yo 4 = ae) Car8) -(Constand
Do_= Rs. oc re ees
Kets Ist. " ef
ES Yeur oP GR ___G.0. Py. NPV
eh pil 0.36 > 02.36 0.8t0 + 2.058"
+e 91362 O02 8.79 0,956 0.10.2.
SEN 2058 0.60 3.98 0.658 2. 1S8.
y 3.28 0.59 ¢ 13.89. 0.572 02,213
5 D8 o.U6 23__0.U94_2.1S2
& 4.33 0.52. 4.95 0.432 9.098
5 4.86 0.59 5 .U3:\_ 0.3767 ai0UR.
g 6: 0.
16.803@ Price tarnings CPIE) Mulliples | Raos- :
|= Market Share _frice a MPS, : a
Earning Per Share EPS ~: chess
Gq The otal ecrming oF the company
and Company have 85,000 equity shares. The
“Cutrent merket price __of _the__share__is Rs. 460, _
LfibehettevbPIE Rottooabiicl Cs Sie er
Sa eee
Company fevity Shewes ___
——_=__.5,00,000_. 0 Rs __=\*0)} Gh NS
ee 257000)
era PEA osln Mes.
= 60| Freewmola i
Vawuarzon! Or DerertNce uarei— oot.
Voluotion of Dp CAVIFAIS, 4+ M4 CPVIF In
Reference Share fc
wtbhere 5
Dz Divicleno} of ‘Welirence naan. a
Me Mertority Value = __ a
Q.._n= 12 yeors— ne
DR = 10°. x ae
PV = 100
M_= 120
R= 24),
= 10 ( PVIEA) 1241 1p 1200 PYLE) ah p12
Ro x 0.254
6l-FU + 2p. RYUSen >