1. To provide for future education costs, a family considers various methods of saving.

Assuming saving will continue for a period of 10 year at an interest rate of 10% per annum. y Calculate the value of the fund at the end of 10 years when deposit of ` 1000 is made annually (starting of the year). Ans-17531 y How much should be deposited each year if the final value of fund is to be ` 40000. Ans-2281

2. New member of a club are admitted at the start of each year and pay a joining fee of ` 2000. Henceforth member pay the annual subscription of ` 400, which falls due at the end of each year. How much does the club earn from a new member over the first 10 years, assuming an annual interest rate of 10%. Ans11563 3. Calculate the net present value (NPV) of the invested project outlined in table below; Year 0 1 2 3 4 y y y Cash Flow (in Rs.) -400,000 110,000 120,000 130,000 140,000

Is this business Viable, if 10% discount rate compound annually? Ans-No, NPV (7534) Is this business Viable, if 20% discount rate compound annually? Ans-No, NPV (-82254) Calculate internal rate of return (IRR). Ans- 9%

4. A loan of Rs. 10,000 is to be paid in 5 years (equal payments at the end of every month). Assuming at an interest rate of 12%, calculate y Amount of monthly payments. Ans- 1003 y Total amount interest paid by me. Ans- 50197 y The amount of interest paid in of the 1st, 2nd and 3rd month. Ans1000,999.67,999.31

If 3rd installment is already paid and I wanted to pay off the loan, how much should I pay? Ans-9989.09

5. To provide for future education costs, a family considers various methods of saving. Assuming saving will continue for a period of 10 year at an interest rate of 10% per annum.

How much should be deposited each month (end of every month) if the final value of fund is to be ` 40000. Ans-195