Q.1 If you invest Rs. 8000 today with a financial company and the company pays you Rs. 1000 in the 1st year, Rs. 1500 in the second year, Rs. 2000 in the 3rd year, Rs. 2500 in the 4th year and Rs. 3000 in the 5th year at 5% rate. Is this a good investment?

Q.2 For a payment of Rs. 10000, a finance company will pay back Rs. 3000 at the end of next four years. Whereas, bank offers 5% interest rate in its saving bank account. Find out where one should invest?

Q.3. Two investment options are available to you. In 1st option, on Rs. 1000, of investment, you will get Rs. 450 at the end of the 1st year, Rs. 325 at the end of 2nd year, Rs. 400 at the end of 3rd year and Rs. 300 at the end of 4th year. Whereas, in the 2nd option, on Rs. 700 of investment, you will get Rs. 250, Rs. 300, Rs. 500 and Rs. 200 at the end of 1st , 2 nd, 3rd and 4th year respectively. Evaluate which scheme offer better returns.

Q.4. Suppose you invest Rs. 400,000 in a fund. The return which you get in the first five years is : Rs. 92000, Rs. 85000, Rs. 94000, Rs. 92500 and Rs. 90000. Find the rate of return at the end of two years, four years and five years.

Need help in solving these using financial functions in Excel?

Thanks!