Mr. Prashant borrowed an amount of Rs. 7, 80,000 from M/s. Krishna Finance Ltd. As per the loan agreement, he has to repay Rs.3 lakhs at the end of 7 th year, Rs.4 lakhs at the end of 8 th year, Rs.2 lakhs at the end of 9 th year and Rs.1 lakh at the end of 10 th year from now. In order to meet these payments, he wants to deposit money in a bank scheme that offers an interest rate of 9% p.a. The approximate amount that Mr. Prashant should invest at the end of every year for a period of 6 years, so that he can repay the loan as per the agreement is (a) Rs.1,02,090(b) Rs.1,11,280(c) Rs.1,21,293 (d) Rs.1,28,905(e) Rs.1,89,389.

If the interest rate is 9% per annum, how much should you invest today in a bank scheme that would fetch you an annuity of Rs.2,000 for a period of 6 years commencing from the beginning of fourth year? (a) Rs.6,352.18(b) Rs.6,926.38(c) Rs.7, (d) Rs.8,232.32(e) Rs.10,

Mr. Ajay Pathak borrowed Rs.1,00,000 from a bank to pay for a new air conditioning system. The loan is for a period of 5 years at an interest rate of 10% and requires 5 equal end-of-year payments that include both principal and interest on the outstanding balance. What will be the outstanding balance after the third payment? (a) Rs. 15,245(b) Rs. 20,865(c) Rs. 45,788 (d) Rs. 50,866(e) Rs. 60,000.

Shruti, a government officer is trying to determine the cost of health care to college students, and their parents' ability to cover those costs. She assumes that the cost of one year of health care for a college student is Rs.1,000 today and it is expected to increase at the rate of 10% every year. The average student is 18 years old when he or she enters college. Parents can save Rs.100 per year at 6% for a period of 18 years since the birth of the child to help cover their children's health care costs. All payments occur at the end of the relevant period, and the Rs.100/year savings will stop the day the child enters college. Shruti wants a health care plan, which covers the fully inflated cost of health care for a student for 4 years, during Years 19 through 22 (with payments made at the end of years 19 through 22). How much would the government have to set aside now (when a child is born), to supplement the average parent's share of a child's college health care cost? (The lump sum the government sets aside will also be invested at 6 percent, annual compounding). (a) Rs.1,082.76(b) Rs.3,997.81(c) Rs.5, (d) Rs.7,472.08(e) Rs.8,

Mr. Raghunath plans to save Rs.2,500 at the end of each year for 12 years starting from this year. Such a saving would provide him with a retirement annuity, which begins 18 years from now (i.e. the first payment is to be received at the end of year 18) and continue to provide an annuity for 20 years. Mr. Raghunath plans this through a savings bank that pays 7% p.a. Which of the following indicates the amount of retirement annuity that Mr. Raghunath would receive? (a) Rs.5,422(b) Rs.5,622(c) Rs.5,822(d) Rs.5,922 (e) Rs.5,942.

You are willing to pay Rs.15,625 to purchase a perpetuity which will pay you Rs.1,250 each year, forever. If your required rate of return does not change, how much would you be willing to pay if this were a 20-year, annual payment, ordinary annuity instead of a perpetuity? (a) Rs.10,342(b) Rs.11,931 (c) Rs.12,273 (d) Rs.13,922 (e) Rs.17,157.

Mr. Prashant Shah wants to buy a car on January 1, It is presently available at a price of Rs.7,50,000 on January 1, He plans to start to deposit his money in the monthly recurring deposit scheme of a bank from January 31, The bank offers a rate of interest of 12 percent per annum compounded monthly. If the car price is expected to go up by 4 percent per annum, how much amount should he deposit every month in that scheme? (round off your answer to the nearest integer) (a) Rs.15,828(b) Rs.16,178(c) Rs.19,584(d) Rs.23,670 (e) Rs.27,028.

You are required to contribute Rs.2000 per year in a pension plan for 10 years from the end of the current year. The plan will pay pension annually for a period of 20 years and the first payment will start after 16 years from now. If this plan is arranged through a savings bank that pays 7% per annum on the deposited funds, what is the size of the yearly pension? (a) Rs.2578(b) Rs.2945(c) Rs.3456(d) Rs.3570 (e) Rs.3659.