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Amt of Credit 1500 Opp. Cost 0.12 Time 3 Present Value $1,067.67

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10 views20 pages

Amt of Credit 1500 Opp. Cost 0.12 Time 3 Present Value $1,067.67

Uploaded by

surbhinagar0918
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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AMT OF CREDIT 1500

OPP. COST 0.12


TIME 3
PRESENT VALUE $1,067.67

class 1 7/8/2024
amt of ANNUITY 900
OPP COST 0.1
TIME 3
PV OF OPTION 2 $2,238.17
PV OF OPTION 1 2500

SINCE the pv of option 2 is lower than that of first. Thus, the customer should opt for option 2.
amt of annuity 1000
rate 0.06
time 4
pv $3,673.01
rate 0.14

YEAR AMT PV
0 5000 $5,000.00
1 6000 $5,263.16
2 8000 $6,155.74
3 9000 $6,074.74
4 10000 $5,920.80

sum $28,414.44

since the sum of present value of amt is 28414.44, so this is the minimum amount which a person should be ready to accept to
should be ready to accept today from his debtor.
class 2 14/8/2024

RATE 0.1
PERIOD CASHFLOW PV OF CASHFLOW
1 800 $727.27
2 900 $743.80
3 1000 $751.31

sum $2,222.39

npv $2,222.39
cureent deposit 16000
annual return/perpetuity 1800
opp cost 1 0.12
opp cost 2 0.1

pv of option 1 15000
pv of option 2 18000

when opp cost id 12%, then the present value is 15000 which is less than current deposit. Thus th
when opp cost id 10%, then the present value is 18000 which is higher than current deposit. Thus
ess than current deposit. Thus the investor should reject it
higher than current deposit. Thus the investor should accept it
present value 5000
rate 0.05
nper 10
future value $8,144.47
annuity 10000
nper 10
rate 0.1

future value $159,374.25


deposit 100
nper 4
rate 0.06

future valu $463.71


annuity 100
rate 0.004583333333
periods 60

no of conversion 12

present value $5,235.28


annuity 5000
rate 0.025
periods 20
no of conversion

pv $79,894.46
fv 50000
nper 10
rate 0.05

pv $30,695.66
rate 0.07
nper 1 fv of option 2 11000
pv of op 1 10000 fv of option 1 $9,345.79
pv of op 2 $10,280.37

option 2 is better
22/8/24 class 4
nper
rate annual 0.1
retirement balance 1000000
monthly contribution 1250
yearly contribution 15000
monthly rate 0.008333
months years
nper yearly 21.37108
nper montly 245.4429 20.45357
rate annual 0.1
retirement balance 1000000
monthly contribution 1250
existing savings 100000
months years
nper 183.8887 15.32406
mortgage loan 240000
monthly amt 1246
rate 0.04
months year
nper 308.725826664617 25.72715
current tenure 360 30
reduce months 51.2741733353827 4.272848
retirement balance 2000000
nper 25
monthly deposits1 1500
monthly yearly
rate 0.84% 10.02868
0.100287

q4b

retirement balance 2000000


nper 25
monthly deposits1 1500
exisiting retirement balanc 100000

rate 0.63% 7.60%


mortgage amt 325000
monthly amt 1600
nper 30
monthly yearly
rate 0.355% 4.26%

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