Explain compound value of an annuity, Financial Management

Assignment Help:

Q. Explain Compound Value of an Annuity?

Compound Value of an Annuity: - Annuity demotes to the periodic flows of equal amounts.

FV = A {(1+i)n - 1}/i

Instance: - Mr. X invests Rs. 2000 at the end of every year for 5 years into his account interest being 5% compounded annually. Conclude the amount of money he will have at the end of the 5^th year.

FV = 2000 {(1+.05) ⁵- 1}/.05

FV = Rs. 11054

Related Discussions:- Explain compound value of an annuity

Capital asset pricing model, Can you draw Capital asset pricing model with ...

Can you draw Capital asset pricing model with example and explain?????

Solution to shareholders versus managers conflict, Solutions to this Confli...

Solutions to this Conflict In common, to make sure that managers act to the best interest of shareholders, the firm will: (a) Acquire Agency Costs in the form of:

Federal reserve system, Federal Reserve System The central banking inst...

Federal Reserve System The central banking institution in the United States responsible for determining United States monetary strategy, including the setting of interest rates

Importance of the government securities markets, Need to Widen and Deepen t...

Need to Widen and Deepen the Government Securities Market The importance of the Government Securities markets can be evaluated from three angles as follows: From the Gove

Homework, Assume Main Street Store’s Net Sales in 2010 were $1,000,000 and ...

Assume Main Street Store’s Net Sales in 2010 were $1,000,000 and it’s Net Income in 2010 was $17,000. Thus, between 2010 and 2011 Main Street Store’s net sales increased 20%. Durin

Define how earnings available to common stockholders, Define how earnings a...

Define how earnings available to common stockholders and common stock dividends paid from the current income statement influence the balance sheet item retained earnings. The a

What are the measures of growth, What are the Measures of growth Sa...

What are the Measures of growth Sales or market share Number of products or markets Employees Profit Number of retail stores

Vernon’s product life-cycle theory of FDI, strengths and weakness

strengths and weakness

Gordon`s dividend capitalisation model , Considering the following informat...

Considering the following information, what is the price of the share as per Gordon’s Model? Details of the Company Net sales Rs.120 lakhs Net profit margin 12.5% Outstandi

Explain the term phishing, QUESTION (a) (i) Describe briefly two potent...

QUESTION (a) (i) Describe briefly two potential E-Banking risks that may have an adverse impact on banks. (ii) Outline some measures to control these two risks. (b) Outli

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages