Calculate the future value of annuity, Financial Management

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1.  An investor is thinking of investing in a recurring deposit scheme that offers an interest rate of 12% per annum. The investment that he is planning is for the higher education of his son who is just two years now. In case the investor decides to invest Rs 20,000 every year, what will be the total money available to him when his son reaches the age of 20 years?

2.  Calculate the Future value of Ordinary Annuity:

a.    Mr. Vinod is depositing Rs.2,000 in a recurring bank deposit which pays  9% p.a. compounded interest. How much amount Mr. Vinod will get at the end of 5th year?

b.   Find the future value of ordinary annuity Rs. 4,000 each six months for 15 years at 5% p.a. a compunded semi-annually. Write a short note on the following:

3.   Loan syndication

4.   Lock Box System

 


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