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problem1. Mr. Thames is interested in buying a security asset which costs Rs. 200,000. He has currently Rs. 100,000. He can earn 12% per year on this investment. Using the present value method, compute the number of years it will take to have Rs. 200,000.

problem2. You are the owner of a small enterprise; you have decided to buy a machine. You can afford to pay Rs.7, 000 per month. You visit your bank’s website and find that the going rate is 3.5% per-month for 48 months. How much can you borrow?

problem3. Outline two sources of finance which can be employed for long-term business development.

problem4.  An investor has deposited Rs 10,000 in the bank account for five years at 8 per cent interest. Determine the amount which he will have in his account when interest is compounded:

a) Annually

b) Semi annually

c) Quarterly

d) Continuously

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M94104

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