We have been working very hard since 2009 to facilitate in your learning Read More. We can't keep up without your support. Donate Now.
+ Link For Assignments, GDBs & Online Quizzes Solution |
+ Link For Past Papers, Solved MCQs, Short Notes & More |
Total Marks | 5 |
Starting Date | Wednesday, June 03, 2020 |
Closing Date | Tuesday, June 09, 2020 |
Status | Open |
Question Title | GDB #01 |
Question Description | Discussion Topic: Time Value of Money Discussion Question: Mr. Ahmed has just received gratuity and he is looking for a suitable investment option that will repay him in long term. He has consulted his friend to invest Rs. 100,000 out of his gratuity amount. His friend has suggested following two options: Option 1: Investing Rs. 100,000 at 12% interest rate compounded semiannually for 10 years. Option 2: Depositing half of investment amount in a saving account for 10 years that pays 10 % interest rate compounded annually and investing remaining half amount at 12% interest rate compounded annually for 10 years. Required:
Note: Complete Calculations and formulas are mandatory; marks will be deducted on providing just answers). |
Tags:
+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)
+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)
+ Click Here to Search (Looking For something at vustudents.ning.com?) + Click Here To Join (Our facebook study Group)Discussion Topic: Time Value of Money
Discussion Question:
Mr. Ahmed has just received gratuity and he is looking for a suitable investment option that will repay him in long term. He has consulted his friend to invest Rs. 100,000 out of his gratuity amount. His friend has suggested following two options:
Option 1:
Investing Rs. 100,000 at 12% interest rate compounded semiannually for 10 years.
Option 2:
Depositing half of investment amount in a saving account for 10 years that pays 10 % interest rate compounded annually and investing remaining half amount at 12% interest rate compounded annually for 10 years.
Required:
Calculate the value of both investment options
Based on the calculation of part 1, which option Mr.Ahmed should select and why?
Note: Complete Calculations and formulas are mandatory; marks will be deducted on providing just answers).
Option 1
100000*0.12*2*10 = Rs.240000
Total Value =100000+240000 = Rs.340000
Option 2
50000*0.1*10 = Rs.50000
50000*0.12*10 = Rs.60000
Total Value = 100000 + 50000 + 60000 = Rs 210000
Select option 2 because the Total Value of this option is more than option 1
MGT201 GDB Solution Spring 2020
Download the file, Click on the below link
solution of GDB is attached
Discussion Topic: Time Value of Money
Discussion Question:
Mr. Ahmed has just received gratuity and he is looking for a suitable investment option that will repay him in long term. He has consulted his friend to invest Rs. 100,000 out of his gratuity amount. His friend has suggested following two options:
Option 1:
Investing Rs. 100,000 at 12% interest rate compounded semiannually for 10 years.
Option 2:
Depositing half of investment amount in a saving account for 10 years that pays 10 % interest rate compounded annually and investing remaining half amount at 12% interest rate compounded annually for 10 years.
Required:
Calculate the value of both investment options
Based on the calculation of part 1, which option Mr.Ahmed should select and why?
Note: Complete Calculations and formulas are mandatory; marks will be deducted on providing just answers).
Option 1
100000*0.12*2*10 = Rs.240000
Total Value =100000+240000 = Rs.340000
Option 2
50000*0.1*10 = Rs.50000
50000*0.12*10 = Rs.60000
Total Value = 100000 + 50000 + 60000 = Rs 210000
Select option 1 because the Total Value of this option is more than option 2
Which formula is used here pls explain
100000*0.12*2*10 = Rs.240000
50000*0.1*10 = Rs.50000
see the question option 1 & 2
amount*interest rate*time*semi annually(1/2*4)
amount = 100000
interest rate = 12% or 12/100 = 0.12
time = 10 years
Half of 100000*interest rate*time
100000*1/2= Rs.50000
interest rate = 10% or 10/100 = 0.1
Time = 10 years
© 2020 Created by +M.Tariq Malik. Powered by
Promote Us | Report an Issue | Privacy Policy | Terms of Service
+ Link For Assignments, GDBs & Online Quizzes Solution |
+ Link For Past Papers, Solved MCQs, Short Notes & More |
We are user-generated contents site. All product, videos, pictures & others contents on vustudents.ning.com don't seem to be beneath our Copyrights & belong to their respected owners & freely available on public domains. We believe in Our Policy & do according to them. If Any content is offensive in your Copyrights then please email at m.tariqmalik@gmail.com or Contact us at contact Page with copyright detail & We will happy to remove it immediately.
Management: Admins ::: Moderators
Awards Badges List | Moderators Group
All Members | Featured Members | Top Reputation Members | Angels Members | Intellectual Members | Criteria for Selection
Become a Team Member | Safety Guidelines for New | Site FAQ & Rules | Safety Matters | Online Safety | Rules For Blog Post