ASSIGMENT NO.1
Math302-Business Mathematics & Statistics
Muhammad Mursleen
(MC210401463)
A deposit of Rs. 6000 in a Bank account earns interest 5% compounded monthly for
four years. How much amount is accumulated in the account after 4 years?
New Formula Balance  A  P1r nt
A  New balance
 n
P  invest Amount
t  period
n  Number of Time
given values
r  rate
R  Rs.6000
t  4 years
n  12
r  5% whichis equal to =(0.05)
A =?
Now putting values in formula
 0.05(12)(4)
A6000112 


 6000(1  0.0042)48
 6000(1.0042)48
 6000(`1.2228)
 Rs.7336.8
A 55-inch segment is divided into three parts whose lengths have the ratio 2 : 4 : 5.
What is the length of the longest part?
total lengthof segment  55inch
Ratio 2:4:5
Sum of ratio  2  4  5  11
Now find longest part
pick the digit highest valuein ratio whichis 5
Longest part  5 55inch
11
 5  5  inch
 25inch
Suppose that you establish an IRA (Individual Retirement Account) at age 43 and you will retire after 22 years hence at
age 65. You plan to make annual payments of Rs1000 into the IRA at the beginning of each year. If you assume a rate
of return of 8.5 percent a year, calculate the future value of your IRA when you will retire at age 65.
n
(1i) 1
We use here Futurevalue formula whcihis  C  

 i

Values :
C  Payment per period  Rs.1000
i Interest rate 8.5% 0.085
n  number of payment  22
Putting these value in formula now
22
(10.085) 1
FV 1000 0.085 


22
 (1.085)  1 
 1000   0.085



 (6.018 1 
1000 0.085 


 (5.018 
1000 0.085 


 1000  (59.0353)
 Rs59,035.3
F.V  Rs.59,0.35.3
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