Fm: present value table query

Neha sharma (-) (1257 Points)

03 September 2012

How can I compute the Present Value and Future Value of Rs. 1, if i=4.5% & n =10

PV of Rs. 1 for 10 years is

4% - 0.676

5% - 0.614

FV of Rs. 1 for 10 years is

4% - 1.480

5% - 1.629

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Mandakini (CA ) (422 Points)
Replied 03 September 2012

you can compute P.V and F.V very easily through your calculator.

For E.g

P.V of Rs.1 for 10 yrs if i = 4

1/1.04 press = 10 times ( for 10 yrs) your answer will be 0.6755

F.V of Re.1 for 10 yrs if i = 4

1.04*1.04 press = for 9 times (for 10yrs) your answer will be 1.4802

so like the same way if i = 4.5 , then use 1.045 .

Neha sharma (-) (1257 Points)
Replied 03 September 2012

Thanks Mandakini

however, could you please guide me regarding how do solve this using the Present Value tables only

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