Question No. 2:
In a domestic business an owner invests 15,000 Rs at 15% per annum for a period of 66 months. Calculate compound interest and also futurevalue.
Solution
S = Money accrued after n years also called compound amount
P = Principal = 15000
r = Rate of interest = 15%
n = Number of periods 66months / 12 =5.5years
S = P(1 + r/100)^ n
Compound interest = S – P
So…
S (this is future value also)= 15000(1+15/100)^5.5
Future value = 32354.105
copound intrest=S-P
= 32354.105-15000
= 17354.105
we can also find fv by this formula ans will be same
fv (future value)= pv(present value)*(1+i)^n
fv=15000(1+.15)^5.5=15000(2.156)
= 32354.10
On Fri, Oct 28, 2011 at 8:56 AM, MUHAMMAD SARIM <sarim.sarwar@gmail.com> wrote:Question No. 3:
How much money deposited now will provide payments of Rs. 10,000 at the end of each quarter for 15 years if interest is 12% compounded quarterly.
Answer:
Amount of annuity = 10000 Rs
Rate of interest = i = 12% / 4 = 0.03
Number of periods = n = 15*4 = 60
Discount Factor = (1-1/(1+i)^n)/i
=((1-1/(1+0.03)^60)/0.03)
= 27.675
Discounted Value = 10000 * 27.675 = 276750
On Fri, Oct 28, 2011 at 8:55 AM, MUHAMMAD SARIM <sarim.sarwar@gmail.com> wrote:
Solution:
Bought
1000 shares at Rs. 56.27 = 56,270
Commission at 1.2% = 675.24
Total Costs = 56,270 + 675.24 = 56,945.24
Sold
1000 shares at Rs. 65.25 = 65,250
Commission at 1.2% = 783
Total Sale = 65,250 – 783 = 64,467
Gain
Net receipts = 64,467
Total cost = 56,270
Net Gain = 64,467 – 56,945.24 = 7521.76
Total Gain = 7521.75
Return on investment = 7521.76 / 56,945.24 * 100
Return on investment = 13.20%
On Thu, Oct 27, 2011 at 9:16 PM, mc110404044 Andleeb Aziz <mc110404044@vu.edu.pk> wrote:
but hum ko to whe instruction follow krni chahye jo Q mi required han.ye bi ho skta hy ap thk soch rhe hn .ap ka Q thk ho.But i am not agree your Q--
On Thu, Oct 27, 2011 at 9:03 PM, mc110403709 Shabbir Amir <mc110403709@vu.edu.pk> wrote:
Dear fellow
Here is mistake in your solution just ready the question again you'll have to skip the step of calculating dividends.
On Thu, Oct 27, 2011 at 12:38 AM, MUHAMMAD SARIM <sarim.sarwar@gmail.com> wrote:
Question No. 1:
A company bought
shares at Rs.
per share and sold them after
year at Rs.
. With a
commission rate of buying and selling the stock. What is its return on investment?
Solution:
Bought
1000 shares at Rs. 56.27 = 56,270
Commission at 1.2% = 675.24
Total Costs = 56,270 + 675.24 = 56,945.24
Sold
1000 shares at Rs. 65.25 = 65,250
Commission at 1.2% = 783
Total Sale = 65,250 – 783 = 64,467
Gain
Net receipts = 64,467
Total cost = 56,270
Net Gain = 64,467 – 56,270 = 8,197
Dividends (1000*10/10) = 1,000
Total Gain = 8,197 + 1,000 = 9,197
Return on investment = 9,197 / 56,945.24 * 100
Return on investment = 16.15% --
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<ANDLEEB AZIZ>
--
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