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1. Narinder has invested Rs. 3,56,000 into a fund for long term, i.e. for 13 years @10.25% p.a. The issuer pays him interest monthly for the first 7 years and quarterly for the next 6 years. How much can he withdraw after 13 years to meet his goal of higher study of his son?

2. Sudesh is a housewife who is highly educated and always thinks of planning her finances properly. Slowly and systematically she has been able to accumulate a sum of Rs. 2,00,000 in her savings bank account and she happened to meet a financial planner who explained to her that interest in saving account is 3.5% p.a. and inflation is about 5% p.a. Thus, the return on her money is negative. Now, she has invested that money into a diversified equity scheme of a mutual fund and expects to get a return of 15% p.a. She wishes to keep that money for 8 years. How much will she have accumulated in her account and by how much will the amount differ if she had continued to keep that money in a savings bank account?

3. Seema has plans to invest some lump sum money in a deposit which pays quarterly interest and the interest is reinvested in the same fund. She has Rs. 3,75,000 to invest for 14 years @12% p.a. How much will be accumulated in her account after 14 years?

4. Mr. Rao spends Rs. 3,60,000 every year as annual living expenses. He is 25 years old and wishes to retire at the age of 60. Inflation is 5% p.a throughout the period and the amount can be invested at 10% p.a. How much will be required by him at the age of 60 to spend every year?

5. You invest Rs. 2,58,000 now for 4 years in a deposit offering a return of 9% p.a. You then can reinvest the accumulated money for a further period of 5 years offering a rate of return of 10% p.a. Calculate the amount accumulates by you after 9 years?

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