Determine the future values utilizing a time preference rate of 9 per cent: (i) The future...
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Determine the future values utilizing a time preference rate of 9 per cent: (i) The future value of Rs 15,000 invested now for a period of four years. (ii) The future value at the end of five years of an investment of Rs 6,000 now and of an investment of Rs 6,000 one year from now. (iii) The future value at the end of eight years of an annual deposit of Rs 18,000 each year. (iv) The future value at the end of eight years of annual deposit of Rs 18,000 at the beginning of each year. (v) The future values at the end of eight years of a deposit of Rs 18,000 at the end of the first four years and withdrawal of Rs 12,000 per year at the end of year five through seven. Determine the future values utilizing a time preference rate of 9 per cent: (i) The future value of Rs 15,000 invested now for a period of four years. (ii) The future value at the end of five years of an investment of Rs 6,000 now and of an investment of Rs 6,000 one year from now. (iii) The future value at the end of eight years of an annual deposit of Rs 18,000 each year. (iv) The future value at the end of eight years of annual deposit of Rs 18,000 at the beginning of each year. (v) The future values at the end of eight years of a deposit of Rs 18,000 at the end of the first four years and withdrawal of Rs 12,000 per year at the end of year five through seven.
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To determine the future values using a time preference rate of 9 percent we can use the compound interest formula Future Value Present Value 1 Interes... View the full answer
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