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Qs. 5: AT.V can be purchased by paying 10,000 now and 20,000, 50,000, 90,000, 80,000 at the end of years 1,2,3,4 respectively. Find the cash down price of T.V if money is 12% effective.
a. 1,83,816 b. *1,82,618 c. 1,86,218 d. 1,62,861?
a. 1,83,816 b. *1,82,618 c. 1,86,218 d. 1,62,861?
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Qs. 5: AT.V can be purchased by paying 10,000 now and 20,000, 50,000, ...
To find the cash down price of the TV, we need to calculate the present value of the future cash flows using the 12% effective interest rate.
Step 1: Identify the cash flows
The cash flows for the TV purchase are as follows:
- Year 0: Cash payment of 10,000
- Year 1: Cash payment of 20,000
- Year 2: Cash payment of 50,000
- Year 3: Cash payment of 90,000
- Year 4: Cash payment of 80,000
Step 2: Calculate the present value of each cash flow
To calculate the present value, we use the formula:
PV = CF / (1 + r)^n
Where PV is the present value, CF is the cash flow, r is the interest rate, and n is the number of periods.
Calculating the present value for each cash flow:
- Year 0: PV = 10,000 / (1 + 0.12)^0 = 10,000
- Year 1: PV = 20,000 / (1 + 0.12)^1 = 17,857.14
- Year 2: PV = 50,000 / (1 + 0.12)^2 = 37,704.92
- Year 3: PV = 90,000 / (1 + 0.12)^3 = 63,839.52
- Year 4: PV = 80,000 / (1 + 0.12)^4 = 48,613.35
Step 3: Calculate the cash down price
The cash down price is the sum of the present values of all the cash flows.
Cash down price = PV(Year 0) + PV(Year 1) + PV(Year 2) + PV(Year 3) + PV(Year 4)
Cash down price = 10,000 + 17,857.14 + 37,704.92 + 63,839.52 + 48,613.35
Cash down price = 178,014.93
Therefore, the cash down price of the TV is 1,78,014.93.
The correct option is not provided in the given choices.
Step 1: Identify the cash flows
The cash flows for the TV purchase are as follows:
- Year 0: Cash payment of 10,000
- Year 1: Cash payment of 20,000
- Year 2: Cash payment of 50,000
- Year 3: Cash payment of 90,000
- Year 4: Cash payment of 80,000
Step 2: Calculate the present value of each cash flow
To calculate the present value, we use the formula:
PV = CF / (1 + r)^n
Where PV is the present value, CF is the cash flow, r is the interest rate, and n is the number of periods.
Calculating the present value for each cash flow:
- Year 0: PV = 10,000 / (1 + 0.12)^0 = 10,000
- Year 1: PV = 20,000 / (1 + 0.12)^1 = 17,857.14
- Year 2: PV = 50,000 / (1 + 0.12)^2 = 37,704.92
- Year 3: PV = 90,000 / (1 + 0.12)^3 = 63,839.52
- Year 4: PV = 80,000 / (1 + 0.12)^4 = 48,613.35
Step 3: Calculate the cash down price
The cash down price is the sum of the present values of all the cash flows.
Cash down price = PV(Year 0) + PV(Year 1) + PV(Year 2) + PV(Year 3) + PV(Year 4)
Cash down price = 10,000 + 17,857.14 + 37,704.92 + 63,839.52 + 48,613.35
Cash down price = 178,014.93
Therefore, the cash down price of the TV is 1,78,014.93.
The correct option is not provided in the given choices.
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Qs. 5: AT.V can be purchased by paying 10,000 now and 20,000, 50,000, 90,000, 80,000 at the end of years 1,2,3,4 respectively. Find the cash down price of T.V if money is 12% effective. a. 1,83,816 b. *1,82,618 c. 1,86,218 d. 1,62,861?
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Qs. 5: AT.V can be purchased by paying 10,000 now and 20,000, 50,000, 90,000, 80,000 at the end of years 1,2,3,4 respectively. Find the cash down price of T.V if money is 12% effective. a. 1,83,816 b. *1,82,618 c. 1,86,218 d. 1,62,861? 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 Qs. 5: AT.V can be purchased by paying 10,000 now and 20,000, 50,000, 90,000, 80,000 at the end of years 1,2,3,4 respectively. Find the cash down price of T.V if money is 12% effective. a. 1,83,816 b. *1,82,618 c. 1,86,218 d. 1,62,861? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Qs. 5: AT.V can be purchased by paying 10,000 now and 20,000, 50,000, 90,000, 80,000 at the end of years 1,2,3,4 respectively. Find the cash down price of T.V if money is 12% effective. a. 1,83,816 b. *1,82,618 c. 1,86,218 d. 1,62,861?.
Qs. 5: AT.V can be purchased by paying 10,000 now and 20,000, 50,000, 90,000, 80,000 at the end of years 1,2,3,4 respectively. Find the cash down price of T.V if money is 12% effective. a. 1,83,816 b. *1,82,618 c. 1,86,218 d. 1,62,861? 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 Qs. 5: AT.V can be purchased by paying 10,000 now and 20,000, 50,000, 90,000, 80,000 at the end of years 1,2,3,4 respectively. Find the cash down price of T.V if money is 12% effective. a. 1,83,816 b. *1,82,618 c. 1,86,218 d. 1,62,861? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Qs. 5: AT.V can be purchased by paying 10,000 now and 20,000, 50,000, 90,000, 80,000 at the end of years 1,2,3,4 respectively. Find the cash down price of T.V if money is 12% effective. a. 1,83,816 b. *1,82,618 c. 1,86,218 d. 1,62,861?.
Solutions for Qs. 5: AT.V can be purchased by paying 10,000 now and 20,000, 50,000, 90,000, 80,000 at the end of years 1,2,3,4 respectively. Find the cash down price of T.V if money is 12% effective. a. 1,83,816 b. *1,82,618 c. 1,86,218 d. 1,62,861? in English & in Hindi are available as part of our courses for CA Foundation.
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