Mrs. Ram has been saving Rs.15,000 per month for the last 5 years and continue to save the same amount for the next 15 years for her retirement at age 60. The return on investment is 12% p.a. compounded monthly. If she withdraws Rs.45,000 per month after retirement (after 15 years) for the next 20 years (i.e. from age 60 to 80), how much money will she have at age 80? Assume the same rate of interest on post retirement investment
and withdrawal is at the beginning of the month.
Mr. Rahul has been saving Rs.9,500 at the beginning of every quarter for 25 years at an average return of 14% p.a. compounded quarterly. He has to set apart Rs.15,00,000 for his daughter’s marriage and Rs.10,00,000 for his son’s marriage from accumulated sum after 25 years. He is saving separately for their education and he wishes to withdraw a certain amount for the next 25 years on the remaining sum. The money accumulated will
be invested at a rate of 8% p.a. How much can he withdraw at the beginning of every year?
A business firm sells a good at the price of Rs 450.The firm has decided to reduce the price of goods to Rs 350. Consequently, the quantity demand for the good rose from 25000 units to 35000 units. Calculate the price elasticity of demand
In recent years there have been a no of environmental pollution and other regulations imposed on business. In view of these changes is maximization of shareholders wealth still a realistic objective. Explain?
Some economists suspect that one of the reasons that economies in developing countries grow so slowly is that they do not have well-developed financial markets. Does this argument make sense?