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!
Let us assume that you deposit Rs.1000 in a bank that pays 10 percent interest compounded yearly for a period of 3 years. The deposit will grow as given details:
First Year
Principal at the beginning. Interest for the year (1000x.10) Total amount
Rs.
1000
100
1100
Second Year
Principal at the beginning. Interest for the year (1100x.10). Total Amount
110
1210
Third Year
Principal at the beginning. Interest for the year (1210x.10)
Total Amount
121
1321
To acquire the future value from current value for one year period:
FV = PV + (PV . k)
Here PV = Present Value;
k = Interest rate
FV = PV (1 + k)
As the same for a two year period:
FV = PV
+ (PV × k)
+ (PV × k × k)
Principal amount
First period interest on principal
Second period interest on the principal
Second periods interest on the first periods interest
FV = PV+PVk+PVk+PVk2
= PV+2PVk+PVk2
= PV (1+2k+K2) = PV (1+k)2
Hence, the future value of amount after n periods is as:
FV = PV (1+k)n ............................Eq(1)
Here FV = Future value n years thus
PV = Cash today or present value
k = Interest rate par year in percentage
n = number of years for that compounding is done
Equation (1) is the fundamental equation for compounding analysis. Here the factor (1+k)n is considered as the future value interest factor or the compounding factor (FVIFk,n). Published tables are obtainable showing the value of (1+k)n for different combinations of k and n. In such table is specified in appendix A of this section.
A company produces 2 modules of mobile phones. 1.Basic modle is sold 5000/=, direct material cost 1250/=, requires 0.25h labour time. Produce unites 8000 per month. 2.smart model
Need: a. Prepare an Income Statement by with appropriation account for the financial year ended 31.12.2010 b. Prepare the partners' present a
Do you have anyone on staff that understands acquisition accounting procedures?
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
Q. What is fair value in stock market? Fair value - Amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between
1.what are the various fields of accounting and how do they differ? 2. how are revenues and expenses affect the owners' equity account? 3. why are revenues and expenses recor
1. Prepare three years of monthly cash budgets, yearly income statements, and yearly balance sheets for the jewelry business Daisy & Company. General Information: 1. Th
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
TERMINATION OF OFFICE OF TRUSTEE The trustee may vacate office in the following ways: 1. Resignation : He may resign at a meeting of creditors and with their consent. 2.
SMALL BANKRUPTCIES The court may order the estate of a debtor to be administered summarily, if the debtor's assets are not likely to exceed Shs 12,000 in value. This is known
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