Illustrate compound value concept, Financial Management

Assignment Help:

Q. Illustrate Compound Value Concept?

The Compound Value Concept is used to find out the FV of present money. It is the same as the concept of compound interest, wherein the interest earned in a preceding year is reinvested at thePrevailing rate of interest for the remaining period. Thus, the accumulated amount (principal + interest) at the end of a period becomes the principal amount for calculating the interest for the next period. The compounding

technique to find out the FV of present money can be explained with reference to:

1) The FV of a single present cash flow, and

2) The FV of a series of cash flows.


Related Discussions:- Illustrate compound value concept

Estimate the average beta of investment in the t-bills, You know that Treas...

You know that Treasury bills have a beta of 0 because they are risk-free.  A portfolio of technology stocks has a beta of 3.  You plan to invest 40% of your investment capital in T

Determine the analytical procedures of auditors, Analytical procedures of a...

Analytical procedures of auditors Auditors must apply analytical procedures at the planning and overall review stage of audit. Analytical procedures include the considerati

Conversion ratio, It is the number that tells how many common stock...

It is the number that tells how many common stocks (or preference stocks) will the bondholder receive at the time of conversion. It is usually constant over

Expalin u.s. dollar weakens in the foreign exchange market, What does it me...

What does it mean when the U.S. dollar weakens in the foreign exchange market? When the U.S. dollar decline in the foreign exchange market one U.S. dollar buys less units of an

Explain benefits of investing via international mutual funds, What are the ...

What are the benefits of investing via international mutual funds? Answer:  The benefits of investing via international mutual funds consist of: (a) Save transaction or info

What is capital recovery, Q. What is Capital recovery? sometimes one ma...

Q. What is Capital recovery? sometimes one may be interested to find out the annual amount paid in the order to redeem a loan of a specific amount over a specific period togeth

Define banks like to make short-term, Banks like to make short-term, self-l...

Banks like to make short-term, self-liquidating loans to businesses.  Why? Banks like to be capable to see where the funds are similarly to come from like the borrower is able to

Cost of equity from new common stock, Weaver Chocolate Co. expects to gain ...

Weaver Chocolate Co. expects to gain $3.50 per share during the present year, its expected dividend payout ratio is 65%, its expected constant dividend growth rate is 6.0%, and its

What is institutional finance, What is Institutional Finance A natio...

What is Institutional Finance A nation's economic structure comprise a number offinancial institutions, like banks, pension funds, insurance companies, creditunions. These i

Buy side analyst, How to Industry analysis and finally stock picking from B...

How to Industry analysis and finally stock picking from Buy-side perspective

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