Find out the future value of annuity at the end of five year, Financial Management

Assignment Help:

Goral is required to pay five equal annual payments of Rs. 10,000 each in his deposit account that pays 10% interest per year. Find out the future value of annuity at the end of five years.

Present Value Concept

After going through the process of determining the FV present money or a present series, now the process of finding out the Present Value (PV) of a future sum or a future series can be discussed. This process is in fact the reverse of compounding technique and is known as the discounting technique. As there are FVs of sums invested now, calculated as per the compounding techniques, there are also the present values of a cash flow scheduled to occur in future. The present value is calculated by discounting technique by applying the following equation.

PV= FV/ (1 + r) n


Related Discussions:- Find out the future value of annuity at the end of five year

Explain about money markets by maturity of the securities, Explain about mo...

Explain about money markets by maturity of the securities. On the basis of the maturity of the securities traded, money markets can be introduced here: Money markets are financ

Explain the country’s balance of payments data, Why would it be useful to e...

Why would it be useful to examine a country’s balance of payments data? Answer:  It would be helpful to observe a country’s BOP for at least two reasons. First, BOP offers detail

What is acquisition, Acquisition (takeover) or merger A merger is the s...

Acquisition (takeover) or merger A merger is the synergy or combination of two companies which are roughly equal in size by consensus of two organisations. A takeover is where

Demand at each particular exchange rate, The usual number of passengers usi...

The usual number of passengers using the service is dependent upon the demand at each particular exchange rate. At 1·52 Euro/£ expected demand = (0·33·)(500 + 460 + 420) = 460

Is it possible to make money in the stock market, Is it possible to make mo...

Is it possible to make money in the stock market when the quotations are going down? What is credit sale? There are three simple moves to make money when prices are going down:

Operating leverage, Operating Leverage Operating leverage define the de...

Operating Leverage Operating leverage define the degree to which an organization cost of operation is fixed as opposed to variable. Therefore, it is a measure of how much a fir

M.r, capital structure

capital structure

Find out the macro consequences of a reduction, Angel Athletics is trying t...

Angel Athletics is trying to determine its optimal capital structure. The company's capital structure consists of debt and common stock. In order to estimate the cost of debt, the

State the factors of small organisations, State the factors of Small organi...

State the factors of Small organisations - More creative and dynamic - More flexible to adapt to environmental changes - More informal and small for example some people l

Calculate the rate of return, A Life Insurance Company invested $10,000,000...

A Life Insurance Company invested $10,000,000 in pure-discount U.S. bonds in May 1995 while the exchange rate was 80 yen per dollar. The insurance company liquidated the investment

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd