We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>
+ Link For Assignments, GDBs & Online Quizzes Solution 
+ Link For Past Papers, Solved MCQs, Short Notes & More 
Dear Students! Share your Assignments / GDBs / Quizzes files as you receive in your LMS, So it can be discussed/solved timely. Add Discussion
How to Add New Discussion in Study Group ? Step By Step Guide Click Here.
Semester “Fall 2011” 


“Money & Banking (MGT411)” This is to inform that next Assignment (covering video lecture no. 01 to lecture no. 09) will be uploaded on VULMS according to the following schedule 


Schedule 

Opening Date and Time 
October 21, 2011 At 12:01 A.M. (MidNight) 

Closing Date and Time 
October 28, 2011 At 11:59 P.M. (MidNight) 

Note: Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience. 

Important:
1. For acquiring the relevant knowledge, do not rely only on handouts but watch the course video lectures, which can be downloaded for free fromwww.youtube.com/vu, and also use other reference books. 2. For planning your semester activities in an organized manner, you are advised to view schedule of upcoming Assignments, Quizzes and GDB in the overview tab of the course website on VULMS. 
</
Tags:
+ How to Follow the New Added Discussions at Your Mail Address?
+ How to Join Subject Study Groups & Get Helping Material? + How to become Top Reputation, Angels, Intellectual, Featured Members & Moderators? + VU Students Reserves The Right to Delete Your Profile, If?.
+ 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)I need hlp tooo
Solution:
Q#1: Considering the fact that the house prices will grow at the rate of 4% per annum, what will be the future house price of the house Mr. Naeem intends to buy after 8 years.
FV = PV (1+i )n
FV = 1,500,000 (1+0.04)8
FV = 1,500,000 (1.04)8
FV = 1,500,000 (1.3685)
FV = Rs. 2,052,853/
Q#2: Based on the answer from Q#1(FV), how much amount Mr. Naeem should invest today (which earns 9% rate of return) so that he may be able to purchase his house after 8 years.
2,052,853 = PV (1+0.09)8
2,052,853 = PV (1.09)8
2,052,853 = PV (1.9925)
PV = 2,052,853 / 1.9925
PV = Rs. 1,030,290/
Q#3: Assume the house prices appreciate at the rate of 6% per annum instead of 4% then how much he should invest today in order to be able to purchase the house after 8 years.
FV = 1,500,000 (1.06)8
FV = 1,500,000 (1.5938)
FV = Rs. 2,390,772/
2,390,772 = PV (1.09)8
2,390,772 = PV (1.9925)
PV = 2,390,772 / 1.9925
PV = Rs. 1,199,885/
Q#4: If Mr. Naeem decides to deposit in less risky certificate of deposits earning only 5% p.a. then how much funds he has to deposit in his bank to be able to purchase the house after 8 years.
2,052,853 = PV (1.05)8
2,052,853 = PV (1.4775)
PV = 2,052,853 / 1.4775
PV = Rs. 1,389,409/
Q#5: If Mr. Naeem decides to invest in more risky growth stocks earning 12% rate of return then how much funds he has to invest to purchase his house after eight years.
2,052,853 = PV (1.12)8
2,052,853 = PV (2.4759)
PV = 2,052,853 / 2.4759
PV = Rs. 829,137/
hi dears,
i think in the 1st question answer you took 1500000 but if you will read the question you will find it should be 2400000 which is current price of the house which he intend to buy.
please clarify this.
koi tu solution likhay
:(
hint for money and banking
see lecture 8 and 9
Semester “Fall 2010”
“Money & Banking (MGT411)”
Assignment No. 01 Marks: 20
Mr. Naeem is working as a finance manager at Superior Textile Mills Limited,
after completing his MBA (Finance) from Virtual University of Pakistan.
Recently, he got married and shifted his family in a rented house near the
office. Paying monthly rent is a painful experience and in this way he cannot
save much for his future needs. Therefore, he is planning to purchase his own
house for avoiding monthly rental expense. For this purpose he is expecting to
sell share in his native house for Rs. 1,500,000/ which is not a sufficient
amount to buy house in a big city. After considering various areas in
Faisalabad city, he chose Model Town for his desired future residency. Based
on the house prices data in that area, he learned that an average two bed room
house currently costs Rs.2,400,000/. So he has to set aside some funds for the
next eight years so that he may be able to purchase his own house after having
sufficient funds.
As Mr. Naeem is planning to purchase the house after eight years, so it is
quite clear that the prices of the houses will not remain the same overtime. In
order to estimate the rate at which the house price will increase he considered
the historical price appreciation data in that area and resulted that house prices
appreciated at the rate of 4% per annum.
Mr. Naeem is planning to invest the funds that will be devoted for purchasing
the house, in a portfolio of investment. He feels that this investment portfolio
containing stocks, bonds and govt. securities will give him the rate of return of
9% p.a.
Required: (4 marks each)
Q#1: Considering the fact that the house prices will grow at the rate of
4% per annum, what will be the future house price of the house Mr.
Naeem intends to buy after 8 years.
Q#2: Based on the answer from Q#1(FV), how much amount Mr.
Naeem should invest today (which earns 9% rate of return) so that he
may be able to purchase his house after 8 years.
Q#3: Assume the house prices appreciate at the rate of 6% per annum
instead of 4% then how much he should invest today in order to be able
to purchase the house after 8 years.
Q#4: If Mr. Naeem decides to deposit in less risky certificate of deposits
earning only 5% p.a. then how much funds he has to deposit in his bank
to be able to purchase the house after 8 years.
Q#5: If Mr. Naeem decides to invest in more risky growth stocks
earning 12% rate of return then how much funds he has to invest to
purchase his house after eight years.
Semester “Fall 2011”
“Money & Banking (MGT411)”
Assignment No. 01 Marks: 20
Mr. Naeem is working as a finance manager at Superior Textile Mills Limited,
after completing his MBA (Finance) from Virtual University of Pakistan.
Recently, he got married and shifted his family in a rented house near the
office. Paying monthly rent is a painful experience and in this way he cannot
save much for his future needs. Therefore, he is planning to purchase his own
house for avoiding monthly rental expense. For this purpose he is expecting to
sell share in his native house for Rs. 1,500,000/ which is not a sufficient
amount to buy house in a big city. After considering various areas in
Faisalabad city, he chose Model Town for his desired future residency. Based
on the house prices data in that area, he learned that an average two bed room
house currently costs Rs.2,400,000/. So he has to set aside some funds for the
next eight years so that he may be able to purchase his own house after having
sufficient funds.
As Mr. Naeem is planning to purchase the house after eight years, so it is
quite clear that the prices of the houses will not remain the same overtime. In
order to estimate the rate at which the house price will increase he considered
the historical price appreciation data in that area and resulted that house prices
appreciated at the rate of 4% per annum.
Mr. Naeem is planning to invest the funds that will be devoted for purchasing
the house, in a portfolio of investment. He feels that this investment portfolio
containing stocks, bonds and govt. securities will give him the rate of return of
9% p.a.
Required: (4 marks each)
Q#1: Considering the fact that the house prices will grow at the rate of
4% per annum, what will be the future house price of the house Mr.
Naeem intends to buy after 8 years.
Q#2: Based on the answer from Q#1(FV), how much amount Mr.
Naeem should invest today (which earns 9% rate of return) so that he
may be able to purchase his house after 8 years.
Q#3: Assume the house prices appreciate at the rate of 6% per annum
instead of 4% then how much he should invest today in order to be able
to purchase the house after 8 years.
Q#4: If Mr. Naeem decides to deposit in less risky certificate of deposits
earning only 5% p.a. then how much funds he has to deposit in his bank
to be able to purchase the house after 8 years.
Q#5: If Mr. Naeem decides to invest in more risky growth stocks
earning 12% rate of return then how much funds he has to invest to
purchase his house after eight years.
See the attached file
Bhai ye to mujhe kuch samajh nhi aa rahi PV n FV nhi leni thi kia house ki?? in formulas ka to nhi pata mujhe :(
See the attached file for MGT411 Assignment#01 Complete Solution
Tariq Sb I think that PV is 2400000 instead of 1500000 because 1500000 is his share from native house and 2400000 is the price of house that he wants to purchase after eight year. The estimated value of house is 2400000. Pls reply
© 2020 Created by +M.Tariq Malik. Powered by
Promote Us  Report an Issue  Privacy Policy  Terms of Service
VU Students reserves the right to delete profile, which does not show any Activity at site nor has not activity more than 01 month.
We are usergenerated 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