Question

An industrial unit in US has agreed to pay 25,000 $ in royalties at the end of each yaer for next 5 years for the use of a patented product design. If the payments are left in a foreign country, interest on the retained funds will be paid at an annual rate of 15%. What amount will be available in 5 years under these conditions? How large would the uniform annual payments have to be if the patent owners insisted that a minimum of 1,75,000 $ be accumulated in the account by the end of 5 years.

Answer 1

Answer:

pay 25,000 $ in royalties at the end of each yaer for next 5 years for the use of a patented product design. If the payments are left in a foreign country, interest on the retained funds will be paid at an annual rate of 15%. What amount will be available in 5 years under these conditions? How large would the uniform annual payments have to be if the patent owners insisted that a minimum of 1,75,000 $ be accumulated in the account by the end of 5 years

Explanation:

GD is Rs.520 and nominal GDP id Rs.650, calculate the price index (base=100)

Ok