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Assumption query

deepansh chawla (CA FINALIST) (180 Points)

09 November 2014

Friends , if question says : we have to settle payment of 10000 USD $

"Pay in 3 months @ rate of interest 10%" (per annum is not mentioned)

can we assume it as 10% for 3 months?

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9 Replies

CA AnKiT BoHrA (AB) (Manager) (25955 Points)
Replied 09 November 2014

i wil say it wil b wrong assumption .. better to assume 10 % per annum

Ashish (student) (366 Points)
Replied 09 November 2014

u shd take 10% p.a. compounded quaterly

CA AnKiT BoHrA (AB) (Manager) (25955 Points)
Replied 09 November 2014

why to talk compounded quarterly and make it hectic.. if nothing is given its advisable to assume its yearly and compunded also annually

Ashish (student) (366 Points)
Replied 09 November 2014

but taking compounded anually will make sum hectic since by now u need play with square roots and all. by the assumption of taking compounded quaterly u just need to divide 10 by 4 and so on

CA AnKiT BoHrA (AB) (Manager) (25955 Points)
Replied 09 November 2014

boss... We cant go with the easy things and on our choices... i had suggested only the thing which is quite possible and commonly given in questions and assumed by students.. Rest on you..

All the best