Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
Question
not use ai please
Compute the followings. (showing each step of calculation is a must): (a) How much does a deposit of Rs
.40000 grow at the end of 10 years at the rate of 6 per cent interest and compounding is done semi-
annually.
(b) A finance company advertises that it will pay a lump sum of Rs. 44650 at the end of five years to
investors who deposit annually Rs. 6000 for 5 years. What is the interest rate implicit in this offer?
(c) Sneha borrows Rs. 100000 for her new business at a monthly interest of 1.25 per cent. The loan is to be
repaid in 12 equal monthly installments, payable at the end of each month. What is the monthly installment
amount?
(d) A stock with holding period of three years has the following estimated dividend payments: Year 1 = Rs
==
1.10; Year 2 = Rs. 1.25 and Year 3 = Rs. 1.50. The estimated sale price of Rs.57, three years from now.
Required rate of return is 15 %. What is the present value of this stock?
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Transcribed Image Text:Compute the followings. (showing each step of calculation is a must): (a) How much does a deposit of Rs .40000 grow at the end of 10 years at the rate of 6 per cent interest and compounding is done semi- annually. (b) A finance company advertises that it will pay a lump sum of Rs. 44650 at the end of five years to investors who deposit annually Rs. 6000 for 5 years. What is the interest rate implicit in this offer? (c) Sneha borrows Rs. 100000 for her new business at a monthly interest of 1.25 per cent. The loan is to be repaid in 12 equal monthly installments, payable at the end of each month. What is the monthly installment amount? (d) A stock with holding period of three years has the following estimated dividend payments: Year 1 = Rs == 1.10; Year 2 = Rs. 1.25 and Year 3 = Rs. 1.50. The estimated sale price of Rs.57, three years from now. Required rate of return is 15 %. What is the present value of this stock?
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