financial management
This query is : Resolved
20 March 2010
i want to know effective rate of return and the method of calulating of the following problem
initial outlay of cash rs 10000
this amt will be received in within one year in 50 weakly equal installment of Rs 230
if required u can assume interest rate as 15%
this problem relate to microfinance co.
plz
give me detail calculation
asap
wasim khan
initial outlay of cash rs 10000
this amt will be received in within one year in 50 weakly equal installment of Rs 230
if required u can assume interest rate as 15%
this problem relate to microfinance co.
plz
give me detail calculation
asap
wasim khan
22 March 2010
For calculation of EAR with Periodic Rate of 15% use the following Formula.
EAR = {(1+Periodic Intt)(raise to power m)} -1
where m =50, peridic intt is .15/50 = .0030
Using above formula, EAR is 16.16%
2) If u are recieving Rs 230 per wek for 50 weeks then its worth as on today is 10,664 caluclated as
PV = A{1-(1+r)raise to power -n}/r
Here, A = 230, r= .15/50(weeks)=.0030 and n= 50.
It is benefil since u r paying 10,000 today where as its value as on today is 10664. So it is beneficial since u are paying less by Rs 664.
EAR = {(1+Periodic Intt)(raise to power m)} -1
where m =50, peridic intt is .15/50 = .0030
Using above formula, EAR is 16.16%
2) If u are recieving Rs 230 per wek for 50 weeks then its worth as on today is 10,664 caluclated as
PV = A{1-(1+r)raise to power -n}/r
Here, A = 230, r= .15/50(weeks)=.0030 and n= 50.
It is benefil since u r paying 10,000 today where as its value as on today is 10664. So it is beneficial since u are paying less by Rs 664.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Journal entry of busniess expenses
- GST Rate for Catering Services
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- Cash balance limit and property purchases limit
- Can we choose not to report losses in ITR3 if they cannot be carried forward?
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
