How compound values can be calculated on anannual basis, Financial Management

Assignment Help:

How Compound values can be calculated on anannual basis

Compound values can be calculated on anannual basis, or on a half-yearly basis or on a monthly basis or on continuous basis or on any other basis you may so desire. This is as the formula takes into consideration a specific time period and interest rate for that time period only.

To calculate these values would be very tedious and would require scientific calculators. To ease our jobs there are tables developed which can take care of interest factor calculations so that our formulas can be written as:

Future Value = (Investment or Present Value) * (Future Value Interest Factor n, i)

Where n = no of time periods and i = is the interest rate.

 


Related Discussions:- How compound values can be calculated on anannual basis

Wealth maximization, Wealth Maximization :- It is as well termed as value m...

Wealth Maximization :- It is as well termed as value maximization or Net Present worth maximization. This schema is now universally accepted as an appropriate criterion for making

Matching or accrual, Matching or Accrual   The accrual concept makes...

Matching or Accrual   The accrual concept makes a distinction among the receipt of cash and the right to receive it, and the payment of cash and legal obligation to pay it.

State the term- pass through certificates, State the term- Pass Through Cer...

State the term- Pass Through Certificates (PTCs) Pass through Certificates (PTCs) are debt securities which pass through income from debtors through intermediaries to investors

Evaluate the fair value of the net assets, IFRS 3 Business combinations n...

IFRS 3 Business combinations necessitate goodwill on gaining to be calculated at the date control is gained. The second gaining gives ROB a 75% holding and consequently control o

Portfolio risk, What is the correlation between the efficient portfolio and...

What is the correlation between the efficient portfolio and the risk-free asset? Possible answers are +1, -1, 0, or cannot be calculated.

Can you explain about finance function, Q. Can you explain about Finance fu...

Q. Can you explain about Finance function? Finance function is the most important function of the all business function. It remains a focus of the all activity. It is not possi

Explain term financial intermediaries, Financial intermediaries Financi...

Financial intermediaries Financial intermediaries are significant to the efficient functioning of the financial markets as they act to bring the borrowers/companies and lenders

Section C, Honey Well company is contemplating to liberalize its collectio...

Honey Well company is contemplating to liberalize its collection effort. It''s present sales are 1000000 and it''s average collection period is 30 days, it''s expected variable c

Regular versus special redemption prices, The call prices for vario...

The call prices for various issues mentioned above are known as regular redemption prices. Point to be noted is that the regular redemption prices are above

Shoppers stop, how are indian customers visiting shoppers stop

how are indian customers visiting shoppers stop

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd