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Time Value of Money
Problem 1: Suppose you want to buy machinery for your new factory in Assam. So, you decide to put your money into an investment plan that offers an interest rate of 5% compounded annually. The plan requires you to invest a fixed amount yearly. After 10 years, you want to receive 60 lakh. How much money should you invest yearly to receive 60 lakh at the end of the tenth year? Assume that the first investment is at the end of year 1.
1) 4,77,027.45
2) 4,57,627.45
3) 4,27,627.45
4) 4,87,757.45
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