Mth302 Assignment NO:1 Solution 2011

Q.1
Bought:
1000 shares @ Rs. 56.27 = 56270 Rs
Commission @ 1.2% = 56270*1.2/100 = 675.24 Rs
Total cost = 56270+ 675.24 = 56945.24
Sold:
1000 shares at Rs. = 65250
Commission at 1.2% = 65250*1.2/100
= 783
Total Sale = 65250- 783 = 64467
Gain
Net receipts = 64467
Total cost = 56945.24 (Commission added)
Net Gain = 64467 – 56945.24 = 7521.76
Return on investment = 7521.76/56945.24*100
= 13.20%
Q.2
S = Money accrued after n years is called compound amount.
P = Principal = 15000
r = Rate of interest = 15% = 0.15
n = Number of periods 66months / 12 =5.5years
S = P (1 + r/100)^ n
Compound interest = S – P
So
S = 15000 (1+15/100)^5.5
Future value = 32354.105
compound interest = S - P
= 32354.105-15000
= 17354.105
Q.3
C is the cash flow/period = 10000 at the end of each quarter
i is the interest rate 12% compounded quarterly so 12%/100 = 0.12
n is the number of payments: 15years*4= 60 because interest compounded quarterly
So
PV = 10000 * [1-(1+0.12)^-60/0.12]
= 10000 * [1-(1.12)^-60/0.12]
= 10000 * [0.9907]
= 9907.16