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
why frog respire through skin
Below is the Trial Balance for Clay Employment Services, year ending December 31, 2011. Previous period's information were as follows: net receivables, $290,000 and inventory, $82
Personal Financial Specialist (PFS) - CERTIFIED PUBLIC ACCOUNTANT who specializes in PERSONAL FINANCIAL PLANNING and completes a series of requirements which compriseexperience, ed
Trustees right to be indemnified Trustees have, however, a right to be indemnified: 1. Out of trust property, for all expenses properly incurred in the execution of the tru
A parent has had a controlling interest of 60% in its subsidiary for a number of years. Below are financial statement extracts of the two companies for the year ended 30 June 20
I have this assignment. Is there a cost associated for help?
A of surat consigns goods to B of jaipur to be sold at or above invoice price.B is entitled to get a commission of 8% on sales at invoice price plus 25% of any surplus price reali
Adger corporation is a service company that measures its output base on the number of customers serviced. The company provided the following fixed and variable cost estimates that
McM Cog is a supplier of industrial parts. Most orders are received at a call center. The call center currently has 10 phone lines total, i.e., a maximum of 10 callers may be in t
Identify the various prices for job To identify the various prices for job, there are numerous points to be considered, including: ?How many garages shall we visit? ?What
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