We have been working very hard since 2009 to facilitate in your learning Read More. We can't keep up without your support. Donate Now.

www.bit.ly/vucodes

+ Link For Assignments, GDBs & Online Quizzes Solution

www.bit.ly/papersvu

+ Link For Past Papers, Solved MCQs, Short Notes & More

Time line of ten years

01/01/2000 to 31/12/2010
│ │
│-------│-------│---------│---------│--------│-------│--------│------│-------│-------------│
│ │
? 1500-----1500----1500-----1500-----1500-----1500----1500---30,000--25,000--10,000


Given
PMT = 1500
n = 7
k = 12 % per annum
P.V = ?
P.V = PMT * 1/k [ 1 – 1/ (1 + k)n ]
= 1500 * 1 / 12 % [ 1 – 1 (1 + 12 %)7 ]
P.V = 1500 * 8.33 [ 1 – 1 / (1.12)7]
= 12500 [ 1 - 1 / 2.21 ]
= 12500 [0.55]
P.V = 6853.89
Given
n = 8 years
k = 12 % per annum
F.V = 30,000
P.V = F.V / (1+k)n
P.V = 30,000 /(1+0.12)8
P.V = 30,000 / 2.48
P.V = 12,116.50
Given
n = 9years
k = 12 % per annum
F.V = 25,000
P.V = F.V / (1+k)n
P.V = 25,000 / (1+0.12)9
P.V = 25,000 / 2.77
P.V = 9,015.25 -

Given
n = 10years
k = 12 % per annum
F.V = 10,000
P.V = F.V / (1+k)n
P.V = 10,000 / (1+0.12)10
P.V = 10,000 / 3.11
P.V = 3,215.43


P.V = 6853.89
P.V = 12,116.50
P.V = 9,015.25
P.V = 3,215.43
P.V = 31,201.07 Answer


Part b
Here we calculate 3th year Present Value

Time line of three years
01/01/2000 to 31/12/2010
│------------│---------│--------- │
0 1 2 3
30,000 80,000

Given
n = 3years
k = 12 % per annum
F.V = 80,000
P.V = F.V / (1+k)n
P.V = 80,000 / (1+0.12)3
P.V = 80,000 / 1.40
P.V = 56,942.42

P.V = 30,000 + 56,942.42
P. V = 86,942.42 answer


+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

+ Click Here to Search (Looking For something at vustudents.ning.com?)

+ Click Here To Join (Our facebook study Group)


Views: 89

Reply to This

Latest Activity

Profile Iconmahnoor omar, Maira Qurxam, Mr.Right and 24 more joined Virtual University of Pakistan
22 minutes ago
+M.Tariq Malik liked Virtual Educators Academy's discussion CS619 Final Projects (Python language) Discussions
1 hour ago
Hacker updated their profile
1 hour ago
Imtiaz Waqar added a discussion to the group STA630 Research Methods
3 hours ago
Imtiaz Waqar joined +M.Tariq Malik's group
3 hours ago
Muhammad Fawad Hassan joined +M.Tariq Malik's group
3 hours ago
Maria commented on +M.Tariq Malik's group EDU101 Foundations of Education
4 hours ago
+ Faisal + replied to shifa arshad's discussion CS605 Assignment No 02 Fall 2020 Solution / Discussion Due Date: 10-dec-2020 in the group CS605 Software Engineering-II
4 hours ago
Maria joined +M.Tariq Malik's group
4 hours ago
Maria and SafeerZaidi are now friends
4 hours ago
SafeerZaidi liked Maria's profile
4 hours ago
Tasha Malik posted a status
"Bio 201 Assignment # 2 Solution https://youtu.be/Gowjc67WZ4c"
5 hours ago
Maria liked +M.Tariq Malik's profile
6 hours ago
Maria left a comment for +M.Tariq Malik
6 hours ago
Blessings posted a status
"Kya khbr k ab wo khan rehta hai...........................Khush rhe yar jhan rehta hai"
6 hours ago
SafeerZaidi liked +M.Tariq Malik's group PAK301 Pakistan Studies
7 hours ago
Virtual Educators Academy posted a discussion
7 hours ago
Virtual Educators Academy updated their profile
7 hours ago
☆ Tina Solangi ☆ updated their profile
8 hours ago
Humaira Khadim replied to +M.Tariq Malik's discussion PSY404 Abnormal Psychology Assignment 01 Fall 2020 Solution / Discussion in the group PSY404 Abnormal Psychology
8 hours ago

© 2020   Created by +M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service

.