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
Define the term Relevance - accounting information Accounting information should have the ability to influence decisions. Except this characteristic is present, there is ac
Open "Hoyle CPA: Earnings Per Share." Under "Free Questions" select "Financial Accounting & Reporting."
I am needing homework help on my Principles to Accounting 1, but don''t know how much you guys charge
1. Firm L has debt with a market value of $200,000 and a yield of 9%. The firm's equity has a market value of $300,000, its earnings are growing at a rate of 5%, and its tax rate i
Consider a not-for-profit hospital faced with a familiar choice: to open or not to open an emergency center in a new suburban hospital shopping mall. The mall's developers claim t
recommendation regarding the current south African vat system
Various types of accounting changes can affect the financial statements of a business enterprise differently. Assume that the following list describes changes that have a material
Q. Describe about Capital Stock? Capital Stock - Ownership shares of a CORPORATION authorized by its ARTICLES OFINCORPORATION. Money value assigned to a corporation's issued sh
Greek Debt Exchange On the evening of February 20, 2012 private institutional investors, representatives of the IMF, ECB, and European governments agreed to a major "intervention"
Transaction Entry Information: May 1 Owener H.Hadi invested $40,000 in the business
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