Payments of $2000 and $1000 were originally scheduled to be paid one year and five years, respectively, from today. They are to be replaced by a $1500 payment due four years from today, and another payment due two years from today. The replacement stream must be economically equivalent to the scheduled stream. What is the unknown payment, if money can earn 7% compounded semiannually?
Answer: C) 1648
FV1 = Future value of $2000, 1 year later = PV (1+ i)^n
A sum of Rs. 8,000 invested at 10% p.a. amounts to Rs. 9,261 in a certain time, interest compounded half-yearly. What will be the compound interest (in Rs. ) on the same sum for the same time at double the earlier rate of interest, when interest is compounded annually?
A and B together borrowed a sum of Rs.51,750 at an interest rate of 7% p.a. compound interest in such a way that to settle the loan, A paid as much amount after three years as paid by B after 4 years from the day of borrowing. The sum (in Rs) borrowed by B was:
A sum lent out at compound interest amounts to Rs. 1,250 in one year and to Rs. 1,458 in 3 years at a certain rate percentage p.a. What is the simple interest on the same sum for 27/5 years at the same rate of interest?
Amit borrowed a sum of Rs. 25,000 on simple interest. Bhola borrowed the same amount on compound interest(interest compounded yearly). At the end of 2 years, Bhola had to pay Rs. 160 more interest than Amit. The rate of interest charged per annum is:
A sum of Rs 15000 is lent at compound interest (compounded annually) at an interest rate of 20% per annum. If the interest is compounded half yearly, then how much more interest (in Rs) will be obtained in one year?