In: Finance
CompU has become a success over the past few years, and Bill and Melinda Jobs decide it is time to meet with a financial planner to make certain his personal finances are in order. Bill has the following questions he needs help in answering regarding his current and future financial goals.
1) | ||||
Opening Balance | 1,000.00 | |||
Rate ,r yearly | 4.00% | |||
Time in Years | 10.00 | |||
Year | Opening Balance | Interest(Opening bal*Intt rate) | Closing Balance(Op bal + Intt + Invt) | |
1.000 | 1,000.00 | 40.00 | 1,040.00 | |
2.000 | 1,040.00 | 41.60 | 1,081.60 | |
3.000 | 1,081.60 | 43.26 | 1,124.86 | |
4.000 | 1,124.86 | 44.99 | 1,169.86 | |
5.000 | 1,169.86 | 46.79 | 1,216.65 | |
6.000 | 1,216.65 | 48.67 | 1,265.32 | |
7.000 | 1,265.32 | 50.61 | 1,315.93 | |
8.000 | 1,315.93 | 52.64 | 1,368.57 | |
9.000 | 1,368.57 | 54.74 | 1,423.31 | |
10.000 | 1,423.31 | 56.93 | 1,480.24 | |
At the end of 10 Years there will be $1,480.24 | ||||
Q11 | ||||
Particulars | Time | PVF@10% | Amount | PV(Amount *PVF) |
Deposits | 1.000 | 0.9091 | 750.00 | 681.82 |
Deposits | 2.000 | 0.8264 | 750.00 | 619.83 |
Deposits | 3.000 | 0.7513 | 750.00 | 563.49 |
Deposits | 4.000 | 0.6830 | 750.00 | 512.26 |
Deposits | 5.000 | 0.6209 | 450.00 | 279.41 |
Deposits | 6.000 | 0.5645 | 450.00 | 254.01 |
Deposits | 7.000 | 0.5132 | 450.00 | 230.92 |
Deposits | 8.000 | 0.4665 | 450.00 | 209.93 |
Deposits | 9.000 | 0.4241 | 450.00 | 190.84 |
Deposits | 10.000 | 0.3855 | 450.00 | 173.49 |
PV of Cash inflows or Amount to be paid for investment | 3,716.01 | |||
Q12 | ||||
Particulars | Time | PVF@10% | Amount | PV(Amount *PVF) |
Deposits | 1.000 | 0.9091 | 500.00 | 454.55 |
Deposits | 2.000 | 0.8264 | 400.00 | 330.58 |
Deposits | 3.000 | 0.7513 | 400.00 | 300.53 |
Deposits | 4.000 | 0.6830 | 400.00 | 273.21 |
Deposits | 5.000 | 0.6209 | 400.00 | 248.37 |
PV of Cash inflows or Amount to be paid for investment | 1,607.22 | |||
Q13 | ||||
Amount to be paid for Bond = 100/12% | ||||
Amount to be paid for Bond = 833.33 | ||||