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!
Let us assume that you deposit Rs.1000 in a bank that pays 10 percent interest compounded yearly for a period of 3 years. The deposit will grow as given details:
First Year
Principal at the beginning. Interest for the year (1000x.10) Total amount
Rs.
1000
100
1100
Second Year
Principal at the beginning. Interest for the year (1100x.10). Total Amount
110
1210
Third Year
Principal at the beginning. Interest for the year (1210x.10)
Total Amount
121
1321
To acquire the future value from current value for one year period:
FV = PV + (PV . k)
Here PV = Present Value;
k = Interest rate
FV = PV (1 + k)
As the same for a two year period:
FV = PV
+ (PV × k)
+ (PV × k × k)
Principal amount
First period interest on principal
Second period interest on the principal
Second periods interest on the first periods interest
FV = PV+PVk+PVk+PVk2
= PV+2PVk+PVk2
= PV (1+2k+K2) = PV (1+k)2
Hence, the future value of amount after n periods is as:
FV = PV (1+k)n ............................Eq(1)
Here FV = Future value n years thus
PV = Cash today or present value
k = Interest rate par year in percentage
n = number of years for that compounding is done
Equation (1) is the fundamental equation for compounding analysis. Here the factor (1+k)n is considered as the future value interest factor or the compounding factor (FVIFk,n). Published tables are obtainable showing the value of (1+k)n for different combinations of k and n. In such table is specified in appendix A of this section.
Show the rectification entries for the following: (10 marks) a. The Sales account is undercast by Rs.15,000 b. Goods returned by
Suppose you are a financial manager of Yuen Cheong Manufacturng Company. Due to the rising demand of product X, Yuen Cheong Manufacturng Company decides to open a new production pl
Q. Show example on Ratio calculations? The current gearing of Springbank plc = 100 × (3·5m/4m) = 87·5% Total debt after issuing $3·4m of debt = 3·5m + 3·4m = $6·9m New le
Before nominations for a board position should the annual report be available
how should i treat items in the additional information
how long does it take to make an assignment
The book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were found la
Define Accruals or accrued charges What are Accruals or accrued charges - Expenses that are done for the current accounting period which have not yet been paid. These are someti
#question.how to account enginering cost
On January 1, 2013, NewTune Company exchanges 15,000 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. Each NewTune''s shares has a $4 par value and a
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