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Compounding or Future Value Concept: - Under this process of compounding the future worth of all cash inflows at the end of the time horizon at a particular rate of interest are found. Interest is compounded when the sum earned on an initial deposit becomes part of the principal at the end of the first compounding period.
Instance: - If Mr. A invests Rs 1000 in a bank which tender him 10% interest compounded annually he as Rs 1100 in his account at the end of the first year. The total of the interest as well as principal Rs 1100 constitutes the principal for the next year. He therefore earns Rs 1210 for the second year. This turns into the principal for the third year and so on.
Ask queswtion #Minimum 100 words accepted# what are the characteristics of debt finance? What are the similarities and differences between debt finance and ordinary share capital
Enumerate the field of study dealing with finance The field of study dealing with finance was treated as encompassing three interrelated aspects of raising and administering re
APPLICABILIYI OF THE OPERETING CYCLE
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In multiple correlation equations we are often interested in finding out how much of the variation in the dependent variable is explained by one independent variable if all the oth
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Development of the Market Until 1950s, T-Bills were issued by both the Central and State Governments and from 1950s, it is only the Central Government that is issuing Treasury
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