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Reference may please be made to the attached file. Upload solution as per guidelines. Thanks

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thnx

thanks, before the last date please upload answers to other two questions as well

Amir sahib. where is ...Dividend..in this Question.. did you missed it or it is not neccessory

 

is my answer is also same...i have also solved in this way..but i m havng trouble in other 2 qs..

 

 

 

 

Complete solution by Muhammad Adnan 4 idea

 

 

Question No. 1:

 

A company bought  shares at Rs.  per share and sold them after  year at Rs. .  With a commission rate of buying and selling the stock. What is its return on investment?

 

Solution

 

shares at Rs.56.27 = 56270

Commission at 1.2% = 56270*1.2/100 = 675.24

Total cost = 56270+ 675.24

= 56945.24

Sold:

1000 shares at Rs. = 65250

Commission at 1.2% = 65250*1.2/100

= 783

Total Sale = 65250- 783 = 64467

Gain

Net receipts = 64467

Total cost = 56945.24

Net Gain = 64467 – 56945.24 = 7521.76

Return on investment = 7521.76/56945.24*100

= 13.20%

 

 

Question No. 2:

 

In a domestic business an owner invests 15,000 Rs at 15% per annum for a period of 66 months. Calculate compound interest and also future value.

 

Solution

S = Money accrued after n years also called compound amount

P = Principal      =   15000

r = Rate of interest =  15%

n = Number of periods  66months / 12  =5.5years

S = P(1 + r/100)^ n

Compound interest = S – P

So…

 

S (this is future value also)= 15000(1+15/100)^5.5

  Future value  = 32354.105

copound intrest=S-P

                         = 32354.105-15000

                         =  17354.105

we can also find fv by this formula ans will be same

fv (future value)= pv(present value)*(1+i)^n

 

 

Question No. 3:

 

How much money deposited now will provide payments of Rs. 10,000 at the end of each quarter for 15 years if interest is 12% compounded quarterly.

 

Solution

 

 

in our question…

C = Cash flow per period = 10000 at the end of each quarter

i = interest rate       12% compounded quarterly  12/100 = 0.12

n = number of payments.  15years*4= 60  because intrest compounded quarterly

 

so…

 

pv = 10000*[1-(1+0.12)^-60/0.12]

     =  10000*[1-(1.12)^-60/0.12]

     =   10000*[0.9907]

     =  9907.16

 

 

remember me in ur prayers

 

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Thank yo so very much for your kind help. GOD Bless you, give you good health, wealth and happiness

Bro.

we should not add dividend in question one..1

tnx Adnan

Dear Plz check your following steps 

PV = 10,000 [0.998 / 0.12]

PV = 10,000 [8.32]

PV = 83,240.49

First you should solve upper portion then divide it by 0.12

 

Juvenile you this answer of question no 01 =13.21 is right ?

Thanks

Complete solution by Muhammad Adnan 4 idea


Question No. 1:

A company bought shares at Rs. per share and sold them after year at Rs. . With a commission rate of buyingand selling the stock. What is its return on investment?

Solution

shares at Rs.56.27 = 56270
Commission at 1.2% = 56270*1.2/100 = 675.24
Total cost = 56270+ 675.24
= 56945.24
Sold:
1000 shares at Rs. = 65250
Commission at 1.2% = 65250*1.2/100
= 783
Total Sale = 65250- 783 = 64467
Gain
Net receipts = 64467
Total cost = 56945.24
Net Gain = 64467 – 56945.24 = 7521.76
Return on investment = 7521.76/56945.24*100
= 13.20%


Question No. 2:

In a domestic business an owner invests 15,000 Rs at 15% per annum for a period of 66 months. Calculate compound interest and also future value.

Solution
S = Money accrued after n years also called compound amount
P = Principal = 15000
r = Rate of interest = 15%
n = Number of periods 66months / 12 =5.5years
S = P(1 + r/100)^ n
Compound interest = S – P
So…

S (this is future value also)= 15000(1+15/100)^5.5
Future value = 32354.105
copound intrest=S-P
= 32354.105-15000
= 17354.105
we can also find fv by this formula ans will be same
fv (future value)= pv(present value)*(1+i)^n


Question No. 3:

How much money deposited now will provide payments of Rs. 10,000 at the end of each quarter for 15 years if interest is 12% compounded quarterly.

Solution


in our question…
C = Cash flow per period = 10000 at the end of each quarter
i = interest rate 12% compounded quarterly 12/100 = 0.12
n = number of payments. 15years*4= 60 because intrest compounded quarterly 

so…

pv = 10000*[1-(1+0.12)^-60/0.12]
= 10000*[1-(1.12)^-60/0.12]
= 10000*[0.9907]
= 9907.16


remember me in ur prayers

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