FINANCIAL MANAGEMENT URGENT

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2011 CAN ANY ONE PLS EXPAIN ME HOW THIS FV IS CALCULATED AND HOW TO CALCULATE 4.046

THIS IS FIRST QUESTION OF JUNE, 09 PCC F M PAPER

PLS

Ram has deposited Rs. 55,650 in a bank, which is paying 15 per cent rate of
interest on a ten-year time deposit. Calculate the amount at the end of ten years?

Calculation of Future Value (FV)
FV = P * CVF10,0.15
FV = 55,650 * CVF10,0.15
(CVF of Re. 1 at 15 percent for 10 years is 4.046)
= 55,650 * 4.046
= Rs. 2,25,159.90.

Kumar

Kumar (Expert)
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20 February 2011
You can use your calculator for this.
Take 1*0.15 and press 'Equals to' (=) 10 times
It is 1*0.15*0.15*0.15…... upto 10 times

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