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Compute the present value of Rs. 1000 receivable 6 years thus if the discount rate is 10 percent.
Solution: The present value is computed as follows: PVkn = FVn . PVIFk,n
= 1,000. (0.5645)
= 564.5
Compute the future value of Rs.5000 at the end of 6 years, whether nominal interest rate is 12 percent and the interest is allocated (payable) quarterly at frequency = 4 Soluti
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