Dear Students,
Some important instructions for Examination.
- Solve the questions with full procedures to get the full marks. Some students only write the answer of the question, which is incorrect. You will not get the full marks until you write the full procedure/steps.
- Questions are designed in the way that you do not need to use Ms Excel for their solution. However for the questions which can be solved by both ways (i.e. by manual and by using MS Excel), you can choose to solve the question on Ms Word or solve them on Ms Excel and then paste it in exam software. If you are solving question on Ms Excel then you must have to mention the formula in separate cell (which should be adjacent to the cell in which you have used the formula) and then paste only those cells in which you have data (Do not take screen shot of whole screen and paste it in exam software). I am writing an example to explain.
Question:
Suppose you make a saving of Rs. 50,000 at the end of each month, assume an interest of 7% compounded monthly, how much will you have accumulated at the end of 4 years?
Method 1:
Payment per period or amount of annuity = 50000
Interest rate = 0.07
Interest rate compounded monthly so divide the interest rate by 12
Number of payments = number of year * compounding period = 4 * 12 = 48
= 50000[(1 + 0.07/12)48 -1]/ (0.07/12)
= 2760461.81
Method 2:
| | |
| Payment per period or amount of annuity | 5000 |
| Interest rate | 0.07 |
| compounded monthly so interest rate | 0.07/12 |
| Number of payments | 4*12 |
| | |
| | |
| ($2,760,461.81) | |
| `=FV(0.07/12,48,50000,0,0) | |
I put the formula in a cell which gave us the direct answer of the question, and also mention the formula which I used in a separate cell because when you copy and paste the cells in exams software then we cannot judge that if you have used correct formula or you just write the answer. So to see the whole procedure we need you to write the formula in separate and adjacent cell. You should first write ‘ before entering the formula, otherwise formula will not appear.
Post a Comment