Q1.
You have invested a sum of ₹10,000 at the beginning of the year at rate of 10%
compounded annually. What is the amount that you will get after the end of 3 years?
Q2. You have invested ₹10,000, ₹5,000, and ₹2,000 at the starting of 1st, 2nd and 3rd year.
Calculate the amount of investment at the end of the 3rd year when interest is provided at
10% compounded annually.
Q3. You have invested an amount of ₹10,000 each at the end of 1st, 2nd and 3rd year.
Calculate the compound value of investment at the end of 3rd year if interest is provided at
10% compounded annually.
Q4. You have invested ₹10,000 now for 3 years at 10% PA compounded semi-annually. Find
the amount that you will get after 3 years. Also compute the FV if compounding is done
Quarterly/Monthly.
Q5. An investment scheme is supposed to give ₹10,000 after 3 years. If the existing rate is
10% find its present value.
Q6. From an investment scheme, you are supposed to receive a sum of ₹10,000, ₹5,000
and ₹2,000 at the end of 1st, 2nd and 3rd year. Estimate its present value if the rate of interest
is 10% P.A.
Q7. Find the present value of an annuity consisting of cash inflow of ₹10,000 PA for 3 years.
The rate of interest that can be earned is 10% PA.
Q8. Ms. X deposits ₹5,00,000 on her retirement in a bank on which interest is provided at
10% PA. How much money in equal instalments can be withdrawn annually for a period of
10 years?
Q9. Ms. X plans to retire 20 years from now. She has the following ideas for meeting her
financial needs after retirement:
- She wants to save and invest equal sum annually to accumulate a lumpsum of ₹20,00,000
after 20 years. How much should she save and invest PA in 20 such instalments if
she starts investing 1 year from now. Assume the rate of interest of 10% PA.
- How would the answer in the previous part change if she starts investing in 20 equal
installments beginning now?
- She further wants to invest the lumpsum of ₹20,00,000 to be received from her
accumulated saving after 20 years in a fund at 8% PA compounded quarterly to
receive thereafter quarterly pension in annuity. First pension is to be received after
first quarter of retirement. She expects to live for 15 years after retirement. Find out
the amount of quarterly pension.
Q10. A person has been given the following options for the investment made by him in the past.
Select the most attractive option assuming the discount rate of 10.5% PA.
- ₹5,50,000 to be received at present time
- ₹16,00,000 to be received after 10th year
- ₹62,500 receivable PA in perpetuity
- ₹90,000 receivable PA for 10 years
- ₹50,000 receivable half yearly for 4 years and ₹3,50,000 after 5th year
