Assumption query

Final 792 views 9 replies

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?

Replies (9)

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

u shd take 10% p.a. compounded quaterly

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

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

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

will the examiner cancel the whole question if 10% is assumed for 3 months?

if you had wrote below the solution in assumption that u had assumed this and this...

 

too i think u can get marks dear..!!!

yea thank u so much :)

your welcome dear.!!! All the best


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