Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Compounded Value of a Series of Cash Flows: - We have considered merely single payment made once as well as its accumulation effect. An investor possibly interested in investing money in instalments and wishes to know the value of its savings after n years.
FV = A (1+i) n ----------- + A (1+i) 2 + A (1+i) 1+ A
Where FV = Future value of the preliminary flow in n years
PV= Initial Cash flow
i= Annual rate of interest
n = No. of years for which compounding is done.
A = Amount deposit or invested.
Illustration: - Mr. X invests Rs.500, Rs.1000, Rs.1500, Rs. 2000 and Rs. 2500 at the end of each year for 5 years. Compute the value at the end of 5 years compounded annually if the rate of interest is 5% p.a.
FV = 500 (1+0.05)4 + 1000 (1+0.05) 3+ 1500 (1+0.05) 2 + 2000 (1+0.05) 1+2500
FV = Rs. 8020
iau.la/im/fin500.pdf need help with 100 questions with multiple answers quiz!
As an investment advisor, you have been approached by a group of professional investors (probably who already have a well-diversified portfolio). They are considering investing in
Determine about the Zero Interest Bonds (ZIBs) Very much alike DDBs, only crucial difference is that these are issued at face values (DDBs are issued at a discount to face valu
Q. Example on hedge fund? Hedge Fund enters agreement to sell HK$ in six month's. At expiration the Hedge Fund requires to buy spot HKD and deliver these against the short futu
What is the rational for having different types of security
A 10-year, 12% semi-yearly coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,050. The bond sells for $1,050. (Suppose that the bond has just bee
Common-size Analysis • Prepare a Common-size Analysis for the Balance Sheet and Income Statement • This should include about 12 accounts in the Balance Sheet and about 10 Inc
We defined the conversion premium as the difference between the market price of the convertible and the conversion value. The conversion premium ratio tells us ab
Types of Warrants The warrants can be classified into different types. They are: Detachable Warrants These warrants are issued with most debentures, like convertible o
Illustrate the meaning of Gearing Gearing is the relationship between equity anddebt. Debt is typically long term liabilities that the organisation has. Equity is all the shar
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd