1. Your company has established a sinking fund to meet an obligation of Rs 8 lac, coming due in 10 years. If the fund can earn 10 percent a year, what annual contributions must be made to accumulate the amount?
2. What annual percentage rate is equal to 12 percent compounded monthly?
1. Bank-A pays 13 percent interest compounded annually on deposits. Bank-B pays 12 percent compounded monthly. In which bank would you prefer to deposit your money?
2. You have taken a 30-year loan for Rs 3 lac. The annual interest on the loan is 12 percent. Estimate your yearly payments.
1. Vindhyachala Financial Services Company offers loans at an annual rate of 10 percent. If the interest is compounded monthly, what is the effective rate?
2. An advertisement by Vijayashri Bank claims that your money will double in 6 years. What is the implied interest?
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