Question

34. Which yields the higher rate of interest - a fixed deposit in a bank which gives Rs. 1,629 after 5 years for every Rs. 1,000 deposited or National savings certificate which gives Rs. 1,901 after 6 years for Rs. 1,000? 35. Mr. A has the right to receive an amount of Rs. 1,000 at the end of 12 years from now. This right has been sold to Mr. B for a present value calculated at the rate of 8% per annum. The money thus received was invested by Mr. A in a deposit account at 9% per annum payable half-yearly. After 8 years, the account had to be closed and then Mr. A invested the amount available at 6% per annum in another bank. How much has Mr. A gained or lost in this transaction, as at the end of 12 years?

          34. Which yields the higher rate of interest - a fixed deposit in a bank which gives Rs. 1,629 after 5 years for every Rs. 1,000 deposited or National savings certificate which gives Rs. 1,901 after 6 years for Rs. 1,000? 35. Mr. A has the right to receive an amount of Rs. 1,000 at the end of 12 years from now. This right has been sold to Mr. B for a present value calculated at the rate of 8% per annum. The money thus received was invested by Mr. A in a deposit account at 9% per annum payable half-yearly. After 8 years, the account had to be closed and then Mr. A invested the amount available at 6% per annum in another bank. How much has Mr. A gained or lost in this transaction, as at the end of 12 years?

Added by Noelia S.

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