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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 5th year.
FV = 2000 {(1+.05) 5- 1}/.05
FV = Rs. 11054
Working capital cycle for a trade Inventories days (time inventories are held before being sold) Plus Trade receivables days (how long
where you deposit 1000dollars at the end of each year for 4 years, what will be the amount of deposits at the end of each year if it is compounded at 12% semi-annually?
how do we measure equity in an orgarnisation
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#how it works
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Project Evaluation The expected value calculations are crucial to project investment decisions. The following example explains the use of probabilities in project evaluation.
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