Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem 1:

Mr Smart desires to buy a Blackberry costing Rs8000. He is willing to wait a year to get it. The bank pays 10% annual interest compounded monthly. How much money should Mr Smart put aside each month starting at the start of this one, to buy the Blackberry at the end of year.

problem 2:

You’ve just celebrated your twentieth birthday and you think you will spend Rs120, 000 on your 60th birthday and the same amount on each of upcoming 9 birthdays. If the interest rate is 10% per annum, how much must you save each year, supposing that annual savings start on the eve of your 21st birthday, till retirement to support your consumption pattern after retirement?

problem 3:

A Mauritian couple living in England plans to pay their child’s tuition fees for 4 years starting 18 years from now. The recent annual cost of university is £7,000, and they anticipate this cost to rise at an annual rate of 5%. In their planning, they suppose which they can earn 6% yearly. How much must they put aside each year, starting upcoming year, if they plan to make 17 equal payments.

problem 4:

You are encountered with a choice between two investments, A and B. Investment A is expected to generate Rs1, 000 every year till perpetuity. Investment B is also perpetuity and will generate a cash flow of Rs800 in year 1 which will grow at a constant rate each year forever. If your required rate of return is 10% per annum, what rate of raise in Investment B’s cash flows is essential to make it as desirable as Investment A.?

problem 5:

On 1 January 2011, Rs500, 000 was borrowed by the Mr Needy from bank for a period of 10 years at a fixed annual rate of interest of 12%. Mr Needy will reimburse interest and principal by equivalent annual payments. Compute the annual payment the first annual payment is effected on 31 December 2011.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M98905

Have any Question? 


Related Questions in Basic Finance

1 what are the risks of global investment2 how can a

1. What are the risks of global investment? 2. How can a derivative security be used to hedge portfolio risk?

Make an analytical model of a tornado using an irrotational

Make an analytical model of a tornado using an irrotational vortex (with velocity inversely proportional to distance from the center) outside a central core (with velocity directly proportional to distance). Assume that ...

1 when an author submits a manuscript to a journal what is

1. When an author submits a manuscript to a journal, what is the general process by which the decision whether or not to publish the paper is made? 2. Distinguish between a paper session and a poster session.

If you receive 15000 today and can invest it at a 5 annual

If you receive $15,000 today and can invest it at a 5% annual rate compounded continuously, what will be your ending value after 20 years?

1 how might land development activities be specialized why

1. How might land development activities be specialized? Why is this activity different from project development discussed in the preceding chapter? 2. What is an option contract? How is it used in land acquisition? What ...

Convert generic headings to talking headingsfrom a

Convert generic headings to talking headings. From a preliminary outline for a report, you have the following major and minor generic headings. Convert these to talking headings that you'll include in your final report. ...

Explains how a portion of your income is withheld

Explains how a portion of your income is withheld throughout the year by your employer, as required by the Internal Revenue Service (IRS). You may have some flexibility on how much income can be withheld. A psychological ...

1 what is the advantage of using multiple measures for a

1. What is the advantage of using multiple measures for a single variable? What is the disadvantage? 2. Briefly explain how a ceiling effect (or floor effect) can affect the outcome of a research study.

Assignmentanswer questions-what are the two principal ways

Assignment Answer questions: -What are the two principal ways in which Congress and state legislatures exercise oversight of administrative agencies? -In what ways does the budgeting process lend itself to political cont ...

Company x has a 7 percent semiannual coupon bonds that

Company X has a 7 percent semiannual coupon bonds that sells for $976, has a face value of $1,000, and has a yield to maturity of 8.079 percent. How many years will it be until this bond matures?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen