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A. Sneha borrows Rs. 100000 for her new business at a monthly interest of 1.25 per cent. The loan is to be repaid in

 

A. Sneha borrows Rs. 100000 for her new business at a monthly interest of 1.25 per cent. The loan is to be repaid in 12 equal monthly installments, payable at the end of each month. Prepare the loan amortization schedule. B. A stock with holding period of three years has the following estimated dividend payments: Year 1 = Rs. 1.10; Year 2 = Rs. 1.25 and Year 3 = Rs. 1.50. The estimated sale price of Rs.57, three years from now. Required rate of return is 15%. What is the present value of this stock? C. XYZ deposited some amount in a bank for 7.5 years at the rate of 6% p.a. simple interest. XYZ received Rs 1,01,500 at the end of term. Compute initial deposit of XYZ. D. In what time will Rs 85000 amount to Rs 157675 at 4.5% p.a.? E. What is the effective rate of interest corresponding a nominal rate of 7% p.a. convertible quarterly?

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