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Rs 01 - Sapm - Time Value Money

This document contains 10 practice problems related to time value of money concepts. The problems involve calculating future and present values given interest rates and time periods for investments, deposits, and annuities. They include calculating the amount received at maturity for investments with interest rates like 8%, 15%, and 20% compounded annually or quarterly over periods of 6 to 16 years. Other problems involve calculating the deposit amount needed today to receive a future sum, or finding present values for amounts to be received in the future discounted at rates like 11.5% and 12% over periods of 8 to 16 years. The final problem provides estimated cash flows from a printer machine investment over 5 years.

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91 views1 page

Rs 01 - Sapm - Time Value Money

This document contains 10 practice problems related to time value of money concepts. The problems involve calculating future and present values given interest rates and time periods for investments, deposits, and annuities. They include calculating the amount received at maturity for investments with interest rates like 8%, 15%, and 20% compounded annually or quarterly over periods of 6 to 16 years. Other problems involve calculating the deposit amount needed today to receive a future sum, or finding present values for amounts to be received in the future discounted at rates like 11.5% and 12% over periods of 8 to 16 years. The final problem provides estimated cash flows from a printer machine investment over 5 years.

Uploaded by

sameer_kini
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Time Value Money (Revision) Practical Sheet

Sapm

1. Rakesh has invested Rs. 60,000 in Bank Certificate of Deposit for 12 years, at 8% interest. How much will he
receive at maturity?
2. Vishal deposits Rs. 2,00,000 with a bank which pays 20% interest compounded annually, for a period of 6 years.
How much amount he would get at maturity?
3. Samrat deposits Rs. 30,000 with bank at 15% interest compounded quarterly. How much amount he will get after
a period of 6 years?
4. Find the future value of Rs. 50,000 to be received at the end of 4 years at 12% interest compounded quarterly.
5. A bank promises to give you Rs. 1,00,000 after 7 years at the rate of 10% interest. How much should you deposit
today?
6. Find the doubling period of the investments, if the interest rates are:
a) 12%
b) 9.5%
c) 16%
d) 8%
e) 7.5%
f) 10%
7. Find out the present value of an annuity of Rs. 3,00,000 over 3 years at 15% discount.
8. Find the present value of Rs. 10,000 receivable 8 years hence if the rate of interest is 12%.
9. Find the present value of Rs. 15,00,000 to be received at the end of 16 years at 11.5% interest compounded
quarterly.
10. Mr. Ghotala has invested Rs. 78,000 on Printer Machine on 1 st Jan 2014. He estimates net cash income from
Printer Machine in next 5 years as under:

FGS/ TYBBI/ SAPM

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