What is the investment present value

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1. You deposited Rs.5,000 in a savings account that pays 12 percent interest, com­pounded Bi-monthly, planning to use it to finish last year in college. Eighteen months later, you decide to go to the Rocky Mountains to become a ski instructor rather than continue in school, so you close out your account. How much money will you receive?

2. What is the future value of a 10-year ordinary annuity with annual payments of Rs.500, evaluated at a 15 percent interest rate by Bank A?

3. A real estate investment has the following expected cash flows:

Year Cash Flows

1 Rs.12,000

2 24,000

3 48,000

4 32,000

The discount rate is 9.5 percent. What is the investment's present value?

Reference no: EM132544147

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