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Time value
Maths & Stats
See this 10 th question is doubt
Answers (12)
Sudha Reddy
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
CA Suraj Lakhotia Admin
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
Thread Starter
Prasanth KumarSir 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
that should be adjusted in no. of terms not rate of interest
Sudha Reddy
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
CA Suraj Lakhotia Admin
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
Thread Starter
Prasanth KumarIf 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
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