In order to create an endowment, which pays Rs 500,000 per year, forever, how much money must be set aside today in the rate of interest is 10%? If the first payment of Rs 500,000 will be received after 3 years, what will be present value of such cash payment?

If you invest $12,000 today , how much will you have c) In 25 years at 10 percent? d) In 25 years at 10 percent (compounded semiannually)?

How much more is a perpetuity of $ 1000 worth than an anuity of the same amount for 25 years? Assume an interest rate of 15% and cash flows at the end of each period?

What is the present value of $150,000 to be received 8 years from today if the discount rate is 11 percent?

You want to invest $10,000 today to accumulate $16,000 for graduate school. If you can invest at an interest rate of 10% compounded annually, how many years will it take to accumulate the required amount?

.You want to start a scholarship fund at your alma mater with giving one $10,000 scholarship annually  beginning one year from now. And you have at most  $150,000 to start the fund. You also want the scholarship to be given out indefinitely. Assuming an annual interest rate of 8% (compounded continuously , do you have enough money for the scholarship fund? 15%4 (Hint: 1. Derive the formula of the present value of a perpetuity .2. Find the present value.)

You expect to deposit the following cash flows at the end of years one (1) through to five (5), $1, 000, $4, 000, $9, 000, $5, 000 and $2, 000 respectively. What is the future value at the end of year six (6) if you can earn 10% compounded annually?