Time Value of Money 1. Suresh keeps a term deposit of Rs 50,000 with the bank at an interest rate of 10% p.a., compounded semi-annually. What is the accumulated amount at the end of 3 years? 2. In how many years will an initial investment of Rs 20,000 grow to Rs 60,000 if interest rate is 8% p.a. and compounding is quartterly? 3. A finance company has a scheme whereby you can invest a one-time amount of Rs 5,000, which becomes Rs 10,000 after 5 years. If the compounding is assumed to be half-yearly, what is the interest rate? 4. Vinita needs to accumulate an amount of Rs 12 lacs at the end of 4 years for her daughter's college fees. The bank is offering interest rate of 8% p.a., compounded quarterly. How much amount should she deposit with the bank today? 5. If interest rate is 12% p.a., compounded annually, how much do you have to invest today, to receive Rs 2 lacs at the end of 2 years 5 years 6. In above problem, what if the interest is compounded half- yearly instead of annually