Saved Bookmarks
| 1. |
`Mr. Shariq owes Mr. Farooq Rs. 7000 due in 5 years and Rs. 15,000 in 7 ½ years. How much should Mr. Shariq pay at the end of 6 years which may be acceptable to Mr. Farooq if money is worth 8% compounded semi-annually? |
|
Answer» Given : Mr. Shariq owes Mr. Farooq Rs. 7000 due in 5 YEARS and Rs. 15,000 in 7 ½ years. money is worth 8% compounded semi-annually To FIND : How MUCH should Mr. Shariq pay at the end of 6 years which may be acceptable to Mr. Farooq Solution: R = 8 % per annum = 4% half yearly Let say Present debt is x for debt Rs 7000/ due 5 years hence Hence 7000 = x( 1 + 4/100)¹⁰ => 7000 = x ( 1.04)¹⁰ => x = 7000 (1.04)⁻¹⁰ Let say Present debt is y for debt Rs 15000/ due 7 ½ years hence Hence 15000 = y( 1 + 4/100)¹⁵ => y = 15000 ( 1.08)⁻¹⁵ Total debt at present = 7000 (1.04)⁻¹⁰ + 15000 ( 1.08)⁻¹⁵ To be paid 6 years Hence = A A = ( 7000 (1.04)⁻¹⁰ + 15000 ( 1.08)⁻¹⁵) ( 1 + 4/100)¹² => A = ( 7000 (1.04)⁻¹⁰ + 15000 ( 1.08)⁻¹⁵ ) ( 1.04)¹² => A = 7000 (1.04)² + 15000 ( 1.04)⁻³ => A = 7,571.2 + 13,334.9 => A = 20,906.1 Payment = Rs 20,906.1 Learn More: What is their net worth? Item Value ($) House (owned) 42,365 Car ... A MAN take 1000 rupees from his friend and the money will gone ... Mr. GIER has 20,000 pesos in the bank but has a debt of 25,300. After ... |
|