Forums

# Time value

See this 10 th question is doubt

Attachments

IMG-20200813-WA0008.jpeg

IMG-20200813-WA0010.jpeg

Prasanth kumar Kamisetty

CA Foundation

11K+

13-Aug-20

42

A = 16000 Period = 18m rate 10% p.a payable half yearly so n =18m/6m= 3 and r = 10/2=5%

sudha reddy

Moderator

13-Aug-20

In 18months compounding is made 3 times so rare should be also 10/3

Prasanth kumar Kamisetty

CA Foundation

11K+

13-Aug-20

sudha reddy Moderator

A = 16000 Period = 18m rate 10% p.a payable half yearly so n =18m/6m= 3 and r = 10/2=5%

If we write t equal to two and half years we will multiply with 2 but I think we should do with 3

Prasanth kumar Kamisetty

CA Foundation

11K+

13-Aug-20

Prasanth kumar Kamisetty

In 18months compounding is made 3 times so rare should be also 10/3

Rate of interest

Prasanth kumar Kamisetty

CA Foundation

11K+

13-Aug-20

Rate given is per annum (per year). Not for 18 months.

Suraj Lakhotia

13-Aug-20

Rate given is per annum (per year). Not for 18 months.

Sir for 12 months rate is 10 percent. Since the question says half yearly it is 5 percent But there are additional 6 months what about it

Prasanth kumar Kamisetty

CA Foundation

11K+

14-Aug-20

sudha reddy Moderator

that should be adjusted in no. of terms not rate of interest

Ok mam. But when I write in the t equal to 3/2 and multiply with 2 AM I compounding only 2 times

Prasanth kumar Kamisetty

CA Foundation

11K+

14-Aug-20

3/2 x 2 =3

If we multiply with 2 we are actually compounding 2 times in one year but I think additional 6 months are left

Prasanth kumar Kamisetty

CA Foundation

11K+

14-Aug-20

Prasanth kumar Kamisetty

If we multiply with 2 we are actually compounding 2 times in one year but I think additional 6 months are left

Thank you sir for being patient and taking extra timr

Prasanth kumar Kamisetty

CA Foundation

11K+

14-Aug-20

Prasanth kumar Kamisetty

Thank you sir for being patient and taking extra timr

Time

Prasanth kumar Kamisetty

CA Foundation

11K+

14-Aug-20

Sales