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!
Assume you are receiving an amount of Rs.5000 twice in a year for subsequent five years one time at the starting of the year and another amount of Rs. 5000 at the ending of the year that you deposit in the bank that pays an interest of 12%. Calculate the value of the deposit at the ending of the fifth year.
Solution: In this type of problem we have to compute the future value of two annuities of Rs.5000 consisting duration of five years. The primary annuity is an annuity due and the next annuity is regular annuity, thus the value of the deposit at the ending of five year would be as:
FVAn + FVAn(due)
= A [((1 + k)n - 1)/k] + A [((1 + k)n - 1)/k](1 + k)
= A (FVIFA12, 5) + A (FVIFA12, 5 ) (1 + k)
=5000 (6.353) + 5000 (6.353)(1.12)
= 31,765 + 35,577
=67336
The value of deposit at the ending of the fifth year = Rs. 67,342.
Profits in subsidiary company The remaining profits that belong to the holding company should be split between pre-acquisition profits and post acquisition profits. The pre
After going through this section, you must be capable to: - Identify the time value of money; - Know what gives money its time value; - Identify
LCI Cable Company grants 1.4 million performance stock options to key executives at January 1, 2013. The options entitle executives to receive 1.4 million of LCI $1 par common shar
Business start up accounting transactions: Jane Whitfield, a sole proprietor, established the JW Flower Shop on January 2, 2010. The following transactions have occurred during
On January 1, a company issued and sold a $400,000, 7%, 10-year bong payable, and recieved proceeds of $396,000. Interest is payable each June 30 and December 31. The company uses
NSC Ltd has a 31 may fiscal year end
Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system. While the new accounting system would save the company mon
The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3
Fraudulent preferences The trustee can set aside any transaction effected within the six months preceding the presentation of the petition in circumstances such as to make it
Banana Computer has a perpetual, convertible 7% annual coupon bond outstanding. The bond has a face value of $1,000 and has a conversion price of $40. The required return on an oth
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