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Accounts doubt wtr maths calculation

CPT 609 views 2 replies

profit expected to next 3 years is 50000/ an discounting/present value factor/inflation rate 10% value of good will @ 2 yrs purchase

pls explian with the help (1/1+r)^n this formula nd explain how to calculate (1/1+r)^n in ordinary calculator.........

Replies (2)

now the rate is 10%

year1: 1/1.10 then press M+

year2: just press = then again M+

year3:just press = then again M+

at last MRC this gives the PVAF for 3years @ 10%

since 50000 is an annuity u can directly multiply it with the PVAF do get the present value or discounted value.

hope it will be helpful to u

thank you very much.........


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