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    MGT 201

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    laibaaliirfan.321

    Copyright:

    © All Rights Reserved
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    MGT 201

    Uploaded by

    laibaaliirfan.321
    3 views3 pages

    Original Title

    mgt 201

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    3 views3 pages

    MGT 201

    Uploaded by

    laibaaliirfan.321

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Name: Laiba irfan

    I’d number: bc220416005. Date: 8-november-2024

    Fall semester 2024

    Assignment no 1 MGT 201

    # Scenario 1

    I will receive Rs. 620,000 in 3 years with a simple interest rate of 11% per
    annum.

    Formula for Simple Interest:

    Present Value (PV) = Future Value (FV) / [1 + (r × t)]

    FV = 620,000\n

    r = 11% or 0.11

    t = 3 years

    Calculation:

    PV = 620,000 / [1 + (0.11 × 3)]

    # Scenario 2

    I will receive Rs. 700,000 after 4 years with a compound interest rate of 10%
    per annum.

    Formula for Annual Compounded Interest:

    Present Value (PV) = Future Value (FV) / (1 + r)^t


    FV = 700,000

    r = 10% or 0.10

    t = 4 years

    Calculation:

    PV = 700,000 / (1 + 0.10)^4)

    # Scenario 3

    I will receive Rs. 600,000 after 4 years, with a semi-annual compound


    interest rate of 12%.

    Formula for Semi-Annual Compounded Interest:

    Present Value (PV) = Future Value (FV) / (1 + (r / n))^(n × t)

    Where:

    FV = 600,000

    r = 12% or 0.12

    t = 4 years (compounded semi-annually)

    Calculation:

    PV = 600,000 / (1 + (0.12 / 2))^(2 × 4))

    Scenario 4

    I deposit Rs. 80,000 at the end of every year for 7 years at an interest rate of
    8% per annum.

    Formula for Present Value of an Annuity:

    PV = P × (1 – (1 + r)^-t) / r

    P = 80,000
    r = 8% or 0.08

    t = 7 years

    Calculation:

    PV = 80,000 × (1 – (1 + 0.08)^-7) / 0.08)

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