Q1. Q2. Q3. a.How much should Mr Arif borrow from Mr Hanif so that he may have to repay Rs.35000 after 3 years if Hanif charges a simple interest rate 4%. b.How long will it take for Rs.900 to amount Rs.1800 at 4% per annum simple interest? a. The rate of interest offered by a bank is 10% compounded annually. A sum of Rs. 10000 is deposited by a person in his account. If the sum isn't withdrawn, then what will be the balance of his account after 4 years? b. Calculate the compound interest earned for Rs.8500 invested for 8 years at the rate of 6% per annum. c. The present value (PV) of Rs8638.20 due at the end of 7 years if money is worth 6% compounded semi annually? Muffin megabucks is considering two different saving plans. The first plan would have her deposit of $800 every six month and she would receive interest at a 7% annual rate compounded semiannually. Under the second plan she would deposit $ 1200 every year with a rate of interest 7.5% compounded annually. The initial deposit with plan I would be made six month from now and plan II , one year hence. What is future (terminal) value of first plan at the end of 8 years? What is future (terminal) value of second plan at the end of 8 years? Which plan should Muffin use , assuming that her only concern is with the value of her savings at the end of 8 years? Would your answer change if the rate of interest on the second plan were 7%? a. A land is leased for 30 years at Rs5000 per annum payable in advance year. Find the cash value of lease on a 4% annual compound interest rate? b. Mr. Mohammad Ali has received a job offer from a large investment bank as an accountant. His base salary will be $45,000 constant to date of retirement. He will receive his first annual salary payment one year from the day he begins to work. Mr. Ali is expected to work for 25 years. What is the present value of the offer if the discount rate is 10 percent? i. i. iii. iv. Q4