20 February 2011
CAN ANY ONE PLS EXPAIN ME HOW THIS FV IS CALCULATED AND HOW TO CALCULATE 4.046
THIS IS FIRST QUESTION OF JUNE, 09 PCC F M PAPER
PLS
Ram has deposited Rs. 55,650 in a bank, which is paying 15 per cent rate of interest on a ten-year time deposit. Calculate the amount at the end of ten years?
Calculation of Future Value (FV) FV = P * CVF10,0.15 FV = 55,650 * CVF10,0.15 (CVF of Re. 1 at 15 percent for 10 years is 4.046) = 55,650 * 4.046 = Rs. 2,25,159.90.