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Q. Example on compound value of the single flow?
Mr. X invests Rs. 1000 at 10% is compounded yearly for three years. Compute value after three years.
FV = PV (1+i) n
FV = 1000 (1+.10) 3
FV = Rs. 1,331
The amount by which the market price exceeds the conversion value or the investment value is called as the premium.
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