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!
Compute the future value of Rs.5000 at the end of 6 years, whether nominal interest rate is 12 percent and the interest is allocated (payable) quarterly at frequency = 4
Solution:
FVn = PV (1 + k/m )m*n
FV6 = 5000(1 + .12/4)6*4
= 50000 (1 + .03)24
= 5000 * 2.0328
= 10,164
After 6 years the future value of Rs.5000 on the origin of quarterly compounding would be as Rs.10 164 whereas in condition of semi-annual and yearly compounding the future value would be as
FV6 = 5000(1 + .12/2)6*2
= 50000 (1 + .06)12
= 5000 * 2.0122
= 10,061
FV6 = 5000(1 + .12)6
= 5000(1.9738)
= 9868
This dissimilarity in future value is because of the fact that interest on interest has been computed.
I am taking finance class. Our books is John C. Hull 2nd edition Risk Management and Financial Institutions. Our HW are from this book. I have four questions I need help with.
Q. Principles of banking and finance? An introduction to the principles of banking and finance. It covers a broad variety of topics using an economic perspective and aims to gi
Are u there?
Describe the concept of full cost recovery with illustrative examples.
Which of the following statements is FALSE of Just-In-Time (JIT) manufacturing systems? Answer Demand pull means a closer relationship with the customer. The power of supp
Determine the Various forms of business organizations There are various forms of business organizations: o Business-organization's objective is to earn a profit o Sole Pr
Transaction Entry Information: May 1 Owener H.Hadi invested $40,000 in the business
The statement of comprehensive income for the year ended 31 December 2009 and its comparative is shown below: 2009 2008 $m
The bid-offer spread as a function of daily trading volume is given by :p(q) = a + b*exp(cq) where q = daily trading volume a = 0.08 b= 0.10 c = 0.05 A trader wants to unwind
How do I compute the selling price of a callable bond? I have the bond selling price if it isn''t callable, but I don''t know how the callable feature impacts the price.
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: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd