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!
Notice an Rs.50, 000 investment in a one year fixed deposit and rolled over yearly for the subsequently two years. The interest rate for the primary year is 5 percent yearly and the expected interest rate for the subsequently two years are 6 percent and 6.5 percent respectively compute the future value of the investment after 3 years and the average annual interest rate.
Solution:
FV = PV (1 + k1 ) (1 + k 2 ) (1 + k 3 )
= 50,000 (1 + .05) (1 + .06) (1 + .065)
= 59,267.25
Average annual interest rate
.05 +.06 + .065/3
= .58333 (wrong)
Already we know the values of FV, PV and n. The average yearly interest rate would be as:
k = n√(FV/PV)
= 3√(59267.25/50,000)
= 3√(1.185345)
= 5.8315%
= it is equivalent to
k = 3√((1 + .05) (1 + .06) (1 + .065) - 1)
=5.8315
#questiondd
GoFlo is a small growing firm that is considering the purchase of another truck to serve GoFlo's expanding customer base. The new truck will cost $21,000 and should generate annual
Is there two type of way to do balance sheet?
Q. Explain about Fiduciary? Fiduciary - Person who is responsible for administration of property owned by others. Corporate management is a FIDUCIARY with respect to corporate
Using CAPM's formula, Return on equity = Risk-free rate + Beta*(Expected market return - risk-free rate) With the given information, Return on equity = 1% + 1.7*(9% - 1%)
The construction manager for Acme, Inc. must decide whether to build single-family homes, apartments, or condominiums. She estimates annual profits will vary with the economy, as f
Notsofast Inc. acquired land for $500,000 on 7/1/2010. It erroneously recorded the full amount as an expense. Explain what Notsofast must do when it discovers the error in 2011. Wh
Carnival Cruise Lines This question has two parts. Answer both parts. Structure your response using headings and subheadings where appropriate. The use of tables and point fo
A of surat consigns goods to B of jaipur to be sold at or above price .Be is entitles to get a ommission of 8% on sales at invoice price plus 25% of any surplus price realized. B
single-audit
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