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

Functions of finance financial management, Q. Explain Functions of Finance ...

Q. Explain Functions of Finance Financial Management? Functions of Finance or else Financial Management: - The functions of Financial Management are: (1) Determining the Fin

Functions of treasurer, Functions of Treasurer:- (1) Cash Management: -...

Functions of Treasurer:- (1) Cash Management: - It comprises the managing of cash receipts and cash payments of the business. (2) Banking Relations: - It comprises operating

Employees’ provident fund, Employees' Provident Fund (EPF) The Employee...

Employees' Provident Fund (EPF) The Employees' Provident Fund (EPF) Act, 1952 is the earliest legislation related to old age income security in India. It is a contributory prov

Financial statement, A company commissioned a valuation of its land and bui...

A company commissioned a valuation of its land and buildings for inclusion in its financial statements. The valuation document contained the following details:

Importance of gantt charts in project communication process, Due to the com...

Due to the complexity of the tasks involved in many projects, communication of responsibility for those tasks is often helped by means of graphical planning techniques.

Analyse the corporate governance issues facing x company, M has recently jo...

M has recently joined the board of X Company, a main listed confectionary manufacturer. The company was established as a family business over a century ago and members of the found

Compounding or future value concept, Compounding or Future Value Concept: -...

Compounding or Future Value Concept: - Under this process of compounding the future worth of all cash inflows at the end of the time horizon at a particular rate of interest are fo

Australian securities and investment commission, Australian Securities and ...

Australian Securities and Investment Commission: The Australian Securities and Investment Commission (ASIC) is an independent government body established by the ASIC Act 1989.

Prepare a statement of financial position, Brown has been in business for s...

Brown has been in business for some years and has kept her drawings slightly below the level of profits each year. You are her accountant, and she has passed you the following list

Financial analysis task force, Task I am sure you are aware that the c...

Task I am sure you are aware that the corporate annual meeting is coming up soon. As part of the Treasurer's presentation, I have been asked to propose a Special Capital Requi

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