principal 1000

interest 7.50% Absolute Cell Reference

tenure 3

SI 1075

Simple Interest

Interest 75 225
Principal 1000
Total Return 1225

Compound Interest
Year 1 Year2 Year 3
Interest 1075 1155.625 1242.297 17.29688
Principal

-1,242.30

A CUSTOMER IS LOOKING TO OPEN A FIXED DEPOSIT

FOR PERIOD OF 5 YEARS WITH AMOUNT OF Rs.
1,00,000. The bank pays quarterly interest of 7.5% pa.
Calculate FV

Principal 100000
Interest 7.50% PER ANNUM
Quarterly Interest 1.88%
Tenure 5 YEARS
Interest paying periods 20
FUTUR VALUE -144,994.80

If interest paid as monthly

Monthly Interest 0.625%

Interest paying periods 60

FUTURE VALUE -145,329.44 -334.64

 A CUSTOMER WANTS TO INVEST Rs.
5000 per month FOR 5 YEARS AND THE
BANK IS PAYING 7.5% PER ANNUM.
Calculate FV

principal 300,000
interest 7.50%
monthly interest 0.63%
time 5
no of paying periods 60
annuity payment 5000
Sensitivity Analysis/Scenario Analysis

FUTURE VALUE -362,635.53 -362,635.53

-362,635.53 24
Return -62,635.53 36
48
(1+r)^n 1.4532944083 60
(1+r)^n-1 0.4532944083 72
(1+r)^n-1/r 72.5271053242
A*(1+r)^n-1/r 362,635.53

A CUSTOMER WANTS TO SEND HIS

DAUGHTER TO COLLEGE IN NEXT 15
YEARS AND WILL COST HIM
Rs.20,00,000. The bank is expected to
pay 8%per annum. How mucg he need
to save monthky to reach his target?

Rate 8%
time 15
FV 2,000,000
Monthly interest 0.00666667
Quarterly Interest 0.02
period - quarterly 60
no of periods (monthly) 180
Annuity (monthly payme -5,779.71
Annuity (quarterly) -17,535.93
Annuity (yearly paymet) -73,659.09
Total Payment -1,040,347.50
Interest 959,652.50
A customer is expecting 10lakh ruoees
in next five years and th eank is paying
8% pa interest. What is the present
value of 10 lakh rupees

FV 1,000,000
NO OF PERIODS 5
Interest 8%
Present value -680,583.20

Face Value of Bond 1000

Coupon 7.60%
YTM 8%
Tenure 5 Years
PV of Bond 1 2 3 4 5
Coupon Payments 76 76 76 76 76
PV of coupon payments 70.3703703704 65.643095037 61.00659 56.69758 52.69291633

PV of Face Value 680.583197034

PV of Bond 986.993750651
PV OF BOND -984.03
Instead of this bond FD is paying 8% - Meaning of YTM
nsitivity Analysis/Scenario Analysis/What if analysis?
2 variable data table
7% 7.50% 8% month and interest rate
TOTAL

306.4105536