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If the desired future value after 5 years with 18% interset rate is 150000 then the present value is (given that(1.18)^5 =2.2877)?
Most Upvoted Answer
If the desired future value after 5 years with 18% interset rate is 15...
Solution:
Given:
Future value (FV) = 150000
Interest rate (r) = 18%
Time period (n) = 5 years
(1 + r)^n = (1 + 0.18)^5 = 2.2877
Formula:
FV = PV x (1 + r)^n
PV = FV / (1 + r)^n
Calculations:
PV = 150000 / 2.2877
PV = 65576.97
Therefore, the present value (PV) is Rs. 65576.97.
Explanation:
- The present value (PV) is the current worth of a future sum of money, considering a specified rate of return over a specific time period.
- The formula for calculating the present value is PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the time period.
- In this case, the future value (FV) is given as Rs. 150000, the interest rate (r) is 18%, and the time period (n) is 5 years.
- We can calculate (1 + r)^n as (1 + 0.18)^5 = 2.2877.
- Using the formula PV = FV / (1 + r)^n, we can find the present value as PV = 150000 / 2.2877 = Rs. 65576.97.
Given:
Future value (FV) = 150000
Interest rate (r) = 18%
Time period (n) = 5 years
(1 + r)^n = (1 + 0.18)^5 = 2.2877
Formula:
FV = PV x (1 + r)^n
PV = FV / (1 + r)^n
Calculations:
PV = 150000 / 2.2877
PV = 65576.97
Therefore, the present value (PV) is Rs. 65576.97.
Explanation:
- The present value (PV) is the current worth of a future sum of money, considering a specified rate of return over a specific time period.
- The formula for calculating the present value is PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the time period.
- In this case, the future value (FV) is given as Rs. 150000, the interest rate (r) is 18%, and the time period (n) is 5 years.
- We can calculate (1 + r)^n as (1 + 0.18)^5 = 2.2877.
- Using the formula PV = FV / (1 + r)^n, we can find the present value as PV = 150000 / 2.2877 = Rs. 65576.97.
Community Answer
If the desired future value after 5 years with 18% interset rate is 15...
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If the desired future value after 5 years with 18% interset rate is 150000 then the present value is (given that(1.18)^5 =2.2877)?
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If the desired future value after 5 years with 18% interset rate is 150000 then the present value is (given that(1.18)^5 =2.2877)? 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 If the desired future value after 5 years with 18% interset rate is 150000 then the present value is (given that(1.18)^5 =2.2877)? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the desired future value after 5 years with 18% interset rate is 150000 then the present value is (given that(1.18)^5 =2.2877)?.
If the desired future value after 5 years with 18% interset rate is 150000 then the present value is (given that(1.18)^5 =2.2877)? 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 If the desired future value after 5 years with 18% interset rate is 150000 then the present value is (given that(1.18)^5 =2.2877)? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the desired future value after 5 years with 18% interset rate is 150000 then the present value is (given that(1.18)^5 =2.2877)?.
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