MAFA/SFM
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 November 2010
Hi Experts,
In the foward Rate Formulae
(i.e)
present value=Futurevalue(interest)/(1+r1)+Future value(interest+principle)/(1+r1)*(1+r2)
My doubt what is the reason for taking (1+r1) even in the 2nd year?can anyone xplain me
In the foward Rate Formulae
(i.e)
present value=Futurevalue(interest)/(1+r1)+Future value(interest+principle)/(1+r1)*(1+r2)
My doubt what is the reason for taking (1+r1) even in the 2nd year?can anyone xplain me
14 November 2010
this formula will be applicable if the rates in bothe the years are different.
And if the rate is same then you can apply the following formula :
present value=Futurevalue(interest)/(1+r1)+Future value(interest+principle)/(1+r1)*(1+r1)
or
present value=Futurevalue(interest)/(1+r1)+Future value(interest+principle)/(1+r1)^2
So for different rate we have to put (1+r1).
And if the rate is same then you can apply the following formula :
present value=Futurevalue(interest)/(1+r1)+Future value(interest+principle)/(1+r1)*(1+r1)
or
present value=Futurevalue(interest)/(1+r1)+Future value(interest+principle)/(1+r1)^2
So for different rate we have to put (1+r1).
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 November 2010
no sir we are discounting future value in the secomg year in such case y we are taking (1+r1) again instead of only (1+r2) pls xplain me in detail im in great confusion
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
- Tax on Amount transferred in HUF Account
- Nursery business
- Working on Gold wastage during Melting of old gold jewellery
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST input credit on commercial property
- ETDS return q4 25-26
- Gift to nri relatives residing in usa
- Intimation under section 245
- GSTR-9C filing
- Royalty payments to the Mining Department for procurement of murum - GST input
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
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
