Case 1 1. calculate pv of tution fees by taking N=4 In normal mode only don't use bgn mode because it is written that tution fees payable at the end of the year. 2. After getting pv put it as FV for investment required with N=5 years and calculate pv the ans is 70737 which is option B Case 2 If youRead more
Case 1
1. calculate pv of tution fees by taking N=4
In normal mode only don’t use bgn mode because it is written that tution fees payable at the end of the year.
2. After getting pv put it as FV for investment required with N=5 years and calculate pv the ans is 70737 which is option B
Case 2
If you use bgn mode then you will get pv in first step at n=6 then you have to discount the pv by 6 yrs
Time Value of Money – Annuities
Case 1 1. calculate pv of tution fees by taking N=4 In normal mode only don't use bgn mode because it is written that tution fees payable at the end of the year. 2. After getting pv put it as FV for investment required with N=5 years and calculate pv the ans is 70737 which is option B Case 2 If youRead more
Case 1
1. calculate pv of tution fees by taking N=4
In normal mode only don’t use bgn mode because it is written that tution fees payable at the end of the year.
2. After getting pv put it as FV for investment required with N=5 years and calculate pv the ans is 70737 which is option B
Case 2
If you use bgn mode then you will get pv in first step at n=6 then you have to discount the pv by 6 yrs
The ans will match in both the cases