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
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
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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