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A company set aside a sum of rupess 5000 annualy for 10 year to pay off a debenture issue of es60000 if the fund accumilate 5% per somppund interset find the surplusfor full redemption?
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A company set aside a sum of rupess 5000 annualy for 10 year to pay of...
Calculation of Accumulated Fund:
Using the formula for compound interest, we can calculate the accumulated fund:
Accumulated Fund = Principal x (1 + (Annual Interest Rate/Compounding Frequency))^(Compounding Frequency x Number of Periods)
Accumulated Fund = 50,000 x (1 + (0.05/1))^(1 x 10)
Accumulated Fund = 50,000 x 1.62889
Accumulated Fund = Rs. 81,444.50
Calculation of Surplus for Full Redemption:
The debenture issue is for Rs. 60,000, but the accumulated fund is Rs. 81,444.50. Therefore, the surplus for full redemption is:
Surplus = Accumulated Fund - Debenture Issue
Surplus = 81,444.50 - 60,000
Surplus = Rs. 21,444.50
Explanation:
The company set aside Rs. 5000 annually for 10 years to pay off a debenture issue of Rs. 60,000. The fund accumulated 5% per annum compounded annually. Using the formula for compound interest, we calculated the accumulated fund to be Rs. 81,444.50. Since the debenture issue is for Rs. 60,000, the surplus for full redemption is calculated by subtracting the debenture issue from the accumulated fund, which is Rs. 21,444.50. This surplus can be used by the company for other purposes.
- Principal amount = Rs. 5000 x 10 = Rs. 50,000
- Annual interest rate = 5%
- Compounding frequency = annually
- Number of periods = 10
Using the formula for compound interest, we can calculate the accumulated fund:
Accumulated Fund = Principal x (1 + (Annual Interest Rate/Compounding Frequency))^(Compounding Frequency x Number of Periods)
Accumulated Fund = 50,000 x (1 + (0.05/1))^(1 x 10)
Accumulated Fund = 50,000 x 1.62889
Accumulated Fund = Rs. 81,444.50
Calculation of Surplus for Full Redemption:
The debenture issue is for Rs. 60,000, but the accumulated fund is Rs. 81,444.50. Therefore, the surplus for full redemption is:
Surplus = Accumulated Fund - Debenture Issue
Surplus = 81,444.50 - 60,000
Surplus = Rs. 21,444.50
Explanation:
The company set aside Rs. 5000 annually for 10 years to pay off a debenture issue of Rs. 60,000. The fund accumulated 5% per annum compounded annually. Using the formula for compound interest, we calculated the accumulated fund to be Rs. 81,444.50. Since the debenture issue is for Rs. 60,000, the surplus for full redemption is calculated by subtracting the debenture issue from the accumulated fund, which is Rs. 21,444.50. This surplus can be used by the company for other purposes.
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A company set aside a sum of rupess 5000 annualy for 10 year to pay off a debenture issue of es60000 if the fund accumilate 5% per somppund interset find the surplusfor full redemption?
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A company set aside a sum of rupess 5000 annualy for 10 year to pay off a debenture issue of es60000 if the fund accumilate 5% per somppund interset find the surplusfor full redemption? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company set aside a sum of rupess 5000 annualy for 10 year to pay off a debenture issue of es60000 if the fund accumilate 5% per somppund interset find the surplusfor full redemption? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company set aside a sum of rupess 5000 annualy for 10 year to pay off a debenture issue of es60000 if the fund accumilate 5% per somppund interset find the surplusfor full redemption?.
A company set aside a sum of rupess 5000 annualy for 10 year to pay off a debenture issue of es60000 if the fund accumilate 5% per somppund interset find the surplusfor full redemption? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company set aside a sum of rupess 5000 annualy for 10 year to pay off a debenture issue of es60000 if the fund accumilate 5% per somppund interset find the surplusfor full redemption? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company set aside a sum of rupess 5000 annualy for 10 year to pay off a debenture issue of es60000 if the fund accumilate 5% per somppund interset find the surplusfor full redemption?.
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