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    Managerial Accounting - Practice

    Uploaded by

    Soham Chatterjee
    dfdr

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Managerial Accounting - Practice

    Uploaded by

    Soham Chatterjee
    2 views3 pages
    dfdr

    Original Title

    MANAGERIAL ACCOUNTING_ PRACTICE

    Copyright

    © © All Rights Reserved

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    dfdr

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    2 views3 pages

    Managerial Accounting - Practice

    Uploaded by

    Soham Chatterjee
    dfdr

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 3

    Time Value of Money Practice Questions

    1. Assuming the time value of money is 12% per year compounded monthly, the present value in 2017 of a Rs.1,00,000 cash

    CF 100000
    R 12%
    T 1
    M 12
    PV 112683

    2. XYZ Co bought a piece of land in 1991 for Rs. 160,000 which appreciated in value at the rate of 3% per year for the first th
    FIRST 3 YEARS LATER 4 YEARS
    CF 160000 CF 223692
    R 3% R 4%
    T 3 T 4
    M 1 M 1
    PV 123131 PV 261688

    3. You have received a bonus of 10 lacs and are looking to deposit the money in a bank account for 5 years. You rec
    Bank Compoundi Annual Rate BANK A BANK B
    A Annually 5% CF 1000000 CF 1000000
    B Quarterly 5% R 5% R 5%
    C Monthly 4.80% T 5 T 5
    D Annually 4.85% M 1 M 4
    FV 1276282 FV 1282037

    HENCE BANK C IS THE BEST

    4. Mr. Sharma wants to have a corpus of Rs. 50 lacs by the end of 12 years. If the annual interest rate is 7% and interes
    CF 2189786
    R 7%
    T 12
    M 2
    FV 5000000

    5. Your birthday is next week. Your parents gave you Rs. 10,000 in cash. You decide to invest this money in a fund th
    CF 10000
    R 5.2
    T 2
    M 4
    FV 7831099
    17 of a Rs.1,00,000 cash amount occurring on 2018 is Rs. 204710

    % per year for the first three years and then at the rate of 4% for the next four years. Find its value after 7 years

    ount for 5 years. You received the proposals from following banks. Determine which bank to choose.
    BANK C BANK D
    CF 1000000 CF 1000000
    R 4.80% R 4.80%
    T 5 T 5
    M 12 M 1
    FV 12241928 FV 1264173

    rest rate is 7% and interest compounds semi-annually, how much should he invest today to reach his goal?

    st this money in a fund that pays 5.2%, compounded quarterly for the next 2 years. How much money can you expect to earn in this period
    ou expect to earn in this period of time?

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