Answer,
a, Absents of interest rate i am not able to calculate the current amount
b. Assuming that interest rate is simple interest method. There is no hint for compounding is given in the question.
Calculation of interest = P*N* R
P = principal amount
N = No of years
R = Rate of Return.
So .....interest after 15 Years =10000*15*6/100=9000
Total amount after 15 years =10000+9000=19000
c.I wanted 100000 after five years...which is having interest rate of 8 %.
We have to calculate present value of future cash flow.That is Net present value.
= PV= FV/(1+r)n
= PV= 100000/ (1.08)5
=100000/1.469= 68058/-
d After 16 years i wanted 100000.
Now I have 8000in my hand.Assuming that there is no compounding.
Future Amount =PNR
1,00,000 =8000*16* interest rate
100000=128000Interst
100000/128000=.78.=78%
e.Same equation above.
Calculation of interest=
200000=100000*N*.08
200000/8000=25
100000*25*.08=200000+100000(principal amount)=300000
25 Years
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