FINANCIAL MATHEMATICS 98 installments due 4 and 5 years hence, respectively. If money is worth 4% convertei [Ans. Rs. 6535.58] semi-annually how much should each installment be ? 16. A debt of Rs....

Extracted text: FINANCIAL MATHEMATICS 98 installments due 4 and 5 years hence, respectively. If money is worth 4% convertei [Ans. Rs. 6535.58] semi-annually how much should each installment be ? 16. A debt of Rs. 10,000 which is due today is to be repaid by 4 equal yearly payments. Ii the interest rate is 5% compounded quarterly, how much should be each installment FoD =4 be: (a) if the first installment is given today? (b) if the first installment is given 1 year from today? [Ans. (a) Rs. 4,029.32, (b) Rs. 3,860.40| The sum of Rs. 2,000, 3,000 and 4,000 are due at the end of 2, 4 and 8 years respectively. It is proposed to replace this series of payments by a single sum of hs oto of interest 10% p.a. effective. Find the