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On 1st April 2001insurance co.purchas 10%securities of Rs10,000at 98%cum-interest.interst will get on 1st January and 1st July every year.find out investment purchase price and interest.?
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On 1st April 2001insurance co.purchas 10%securities of Rs10,000at 98%c...
Investment Purchase Price
To calculate the investment purchase price, we need to first find the face value of the securities. The face value is Rs. 10,000, and the securities were purchased at 98% cum-interest. This means that the purchase price was 98% of the face value, which is:
Purchase price = 98% of Rs. 10,000 = Rs. 9,800
Therefore, the investment purchase price was Rs. 9,800.
Interest Calculation
The securities are cum-interest, which means that the interest is included in the purchase price. The interest is paid on 1st January and 1st July every year. Since the securities were purchased on 1st April 2001, the first interest payment will be due on 1st July 2001.
To calculate the interest payment, we need to first find the rate of interest. The securities carry a 10% interest rate, which is divided into two payments of 5% each. Therefore, the interest payment due on 1st July 2001 will be:
Interest payment = 5% of Rs. 10,000 = Rs. 500
Since the securities were purchased at a discount, the interest payment will be higher than the actual interest rate. The actual interest rate can be calculated by dividing the interest payment by the purchase price:
Actual interest rate = Interest payment / Purchase price x 100
= Rs. 500 / Rs. 9,800 x 100
= 5.1%
Therefore, the actual interest rate on the securities is 5.1%.
To calculate the investment purchase price, we need to first find the face value of the securities. The face value is Rs. 10,000, and the securities were purchased at 98% cum-interest. This means that the purchase price was 98% of the face value, which is:
Purchase price = 98% of Rs. 10,000 = Rs. 9,800
Therefore, the investment purchase price was Rs. 9,800.
Interest Calculation
The securities are cum-interest, which means that the interest is included in the purchase price. The interest is paid on 1st January and 1st July every year. Since the securities were purchased on 1st April 2001, the first interest payment will be due on 1st July 2001.
To calculate the interest payment, we need to first find the rate of interest. The securities carry a 10% interest rate, which is divided into two payments of 5% each. Therefore, the interest payment due on 1st July 2001 will be:
Interest payment = 5% of Rs. 10,000 = Rs. 500
Since the securities were purchased at a discount, the interest payment will be higher than the actual interest rate. The actual interest rate can be calculated by dividing the interest payment by the purchase price:
Actual interest rate = Interest payment / Purchase price x 100
= Rs. 500 / Rs. 9,800 x 100
= 5.1%
Therefore, the actual interest rate on the securities is 5.1%.
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On 1st April 2001insurance co.purchas 10%securities of Rs10,000at 98%cum-interest.interst will get on 1st January and 1st July every year.find out investment purchase price and interest.?
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On 1st April 2001insurance co.purchas 10%securities of Rs10,000at 98%cum-interest.interst will get on 1st January and 1st July every year.find out investment purchase price and interest.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about On 1st April 2001insurance co.purchas 10%securities of Rs10,000at 98%cum-interest.interst will get on 1st January and 1st July every year.find out investment purchase price and interest.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st April 2001insurance co.purchas 10%securities of Rs10,000at 98%cum-interest.interst will get on 1st January and 1st July every year.find out investment purchase price and interest.?.
On 1st April 2001insurance co.purchas 10%securities of Rs10,000at 98%cum-interest.interst will get on 1st January and 1st July every year.find out investment purchase price and interest.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about On 1st April 2001insurance co.purchas 10%securities of Rs10,000at 98%cum-interest.interst will get on 1st January and 1st July every year.find out investment purchase price and interest.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st April 2001insurance co.purchas 10%securities of Rs10,000at 98%cum-interest.interst will get on 1st January and 1st July every year.find out investment purchase price and interest.?.
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