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Ue Find the simple discount and the present value of Rs. 5,000 loans for 4 mont}, ay
‘in
(Ans. Rs. 150, Rs 4
ey tool dissunt) {1a loan of Rs. 6,000 for ne
2 Find the rate of discount at which present value of a ies One eg
will be Rs. 5,400. ; ; fAns, yy
3. The proceeds of a Rs. 2,000 loans for one year at simple discount were Re, Lay,
Y” What was the simple discount rate. - (Ans, ly
~ 4. Find the present value and discount on Rs. 10,000 due in one year at discount ra,
4% convertible quarterly. 2 (Ans. Rs. 9,60 Bs, 37
_<5/ Find the present value and
iscount on Rs. 6,000 due in 2 years at 4% convertity,
* [Ans. Rs. 5,536.47, Rs, 463.53)
sp 6. Find the present value and discount on Rs. 6,000 due in 3 years at 4% effective ray
of discount. [Ans. Rs. 5,308 42, Rs. 691.54)
7. If the present value of Rs. 1,000 due in 3 years at a certain nominal rate of discount,
convertible semi-annually is Rs. 832.97, find the rate of discount.
quarterly.
(Ans, 64)
v Ifthe present value of Rs. 3,000 due in 2 years at a certain effective rate of discout
is Rs. 2,707. Find the rate of discount, [Ans. 54)
A. Find the effective rate of discount equivalent to the nominal rate of discount 54
convertible monthly. [Ans. 4.88%]
J®. Find the effective rate of discount equivalent to the nominal rate of discount 6%
convertible continuously. [Ans. 5.824)
U What effective rate will be equivale
nt to the nominal rate of discount 8%, convertible
(a) quarterly ?, (b) semi-annually ? (Ans. (a) 7.76%, (6) 71.40
3% What effective rate of discount will be equivalent to the nominal rate of discount 12%
convertible (a) semi-annually? (b) quarterly? (c) monthly ? and (d) continuously ?
(Ans. (a) 11.64%, (6) 11.47% (¢) 11 1319)
13. The amount of Re, 1 in 2 years at Oe
a certain nominal rate of interest :
: plus the preset!
value of Re. 1 due in 2 years, at the Same nominal rate of discount, both raté
convertible half-yearly, is 2.00480032. Find the rate of discount, (Ans. 44)
14, The amount of Re. 1 in one year at a certain nominal rate of interest plus the preset!
value of Re. 1 due in one year, at the sai i:
, » rm i
convertible quarterly ig 2.00480032, Find he ie ora cae an ee
iscount, [Ans. 8%)
15. Find the nominal rate of discount co) i
effective rate of discount 6%.
16. What is the nominal rate of discount convertible contin, ‘ ont t
uously, which j ivalent
the effective rate of discount 5% ? Sees
[Ans, 5.16% COUNT
17. Find the nominal rate of discount convertible half-yearly which is equivalent
nominal rate of discount 9% convertible quarterly. [Ans. 8.9!
18, Find the nominal rate of discount convertible quarterly which is equivalent to th
nominal rate of discount 12% convertible monthly. [Ans. 11.88%:
19,Which nominal rate of discount, convertible monthly will be equivalent to the
9 : ;
CY" trective rate of discount 7% ? [Ans. 7.2%]
29; Find the present value of Rs. 5,000 due after 4 years from now at a rate of rate of
discount of Rs. 6%, convertible continuously. [Ans. Rs. 3,933.15]
ay What is the present value of Rs. 4,000 payable at the end of 7 years at 5% rate of
discount, convertible continuously. [Ans. Rs. 2,818.76]
22. At what rate of discount the present value of Rs. 2,000 payable after 5 years from
now will be Rs. 1,340.64, if the discount is convertible continuously. [Ans. 8%]
23, Find the rate of interest convertible continuously, if the present value of Rs. 8,000
due in 4 years will be Rs. 5,362.56. [Ans. 10%]
24, The present value of an obligation of Rs. 7,000 due in n year at a rate of discount of
7% convertible continuously is Rs. 5,290.46. Find n. [Ans. 4 years]
\B& Find the rate of discount corresponding to a rate of interest of (i) 5%, (ii) 8%, and (iii)
10%. {Ans. (i) 4.76%, (ii) 7.41%, (iii) 9.09%]