Scribd Logo
Upload

Welcome to Scribd!

  • 47 views

    PV Function For Annuity: Calculation of PV For Re.1 at 10% For 2 Years PVF Year

    Uploaded by

    Dr. Vinoth
    The document contains calculations and explanations of various financial concepts: 1) It shows the calculation of present value for Rs. 1 at 10% interest over 2 years. 2) Various time value of money functions are defined like present value, future value, annuity etc. for different cash flows and interest rates. 3) Examples of simple and compound interest calculations are provided. 4) The rule of 72 and 69 for estimating doubling/halving time is explained.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    PV Function For Annuity: Calculation of PV For Re.1 at 10% For 2 Years PVF Year

    Uploaded by

    Dr. Vinoth
    47 views9 pages
    The document contains calculations and explanations of various financial concepts: 1) It shows the calculation of present value for Rs. 1 at 10% interest over 2 years. 2) Various time value of money functions are defined like present value, future value, annuity etc. for different cash flows and interest rates. 3) Examples of simple and compound interest calculations are provided. 4) The rule of 72 and 69 for estimating doubling/halving time is explained.

    Original Title

    Practise

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document contains calculations and explanations of various financial concepts: 1) It shows the calculation of present value for Rs. 1 at 10% interest over 2 years. 2) Various time value of money functions are defined like present value, future value, annuity etc. for different cash flows and interest rates. 3) Examples of simple and compound interest calculations are provided. 4) The rule of 72 and 69 for estimating doubling/halving time is explained.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    47 views9 pages

    PV Function For Annuity: Calculation of PV For Re.1 at 10% For 2 Years PVF Year

    Uploaded by

    Dr. Vinoth
    The document contains calculations and explanations of various financial concepts: 1) It shows the calculation of present value for Rs. 1 at 10% interest over 2 years. 2) Various time value of money functions are defined like present value, future value, annuity etc. for different cash flows and interest rates. 3) Examples of simple and compound interest calculations are provided. 4) The rule of 72 and 69 for estimating doubling/halving time is explained.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 9

    Calculation of PV for Re.

    1 at 10% for 2 years Present value of seri


    PVF Year
    Amount 2000 500000 1
    Interest Rate 10% 10% 2
    Year 5 10 3
    PV 1241.8426461 192771.64471 4
    5
    PV Function

    1 ₹ 1,241.84
    PV Function
    2 ₹ 192,771.64

    Year Year
    1 2020
    2 2021
    3 2022
    4 2023
    5 2024
    6 2025
    7 2026
    8 2027
    9 2028
    10 2029

    PV Function for annuity


    Year

    1
    2
    3
    4
    5

    Annuity
    Present value of series of cash flows
    Cash Flows Rate PVF PV
    500 10% ₹ 0.909 ₹ 454.5 Note
    1000 10% ₹ 0.826 ₹ 826.4 PVF=For Re.1
    1500 10% ₹ 0.751 ₹ 1,127.0 PV=For Cash flow
    2000 10% ₹ 0.683 ₹ 1,366.0
    2500 10% ₹ 0.621 ₹ 1,552.3
    Total ₹ 5,326.29

    Cashflows Rate PVIF PV


    12000 9% ₹ 0.917 ₹ 11,009.17
    15000 9% ₹ 0.842 ₹ 12,625.20
    20000 9% ₹ 0.772 ₹ 15,443.67
    25000 9% ₹ 0.708 ₹ 17,710.63
    22000 9% ₹ 0.650 ₹ 14,298.49
    21000 9% ₹ 0.596 ₹ 12,521.61
    18000 9% ₹ 0.547 ₹ 9,846.62
    17500 9% ₹ 0.502 ₹ 8,782.66
    15600 9% ₹ 0.460 ₹ 7,182.67
    27000 9% ₹ 0.422 ₹ 11,405.09
    Total ₹ 120,825.82

    nction for annuity


    Cash
    Flows
    1000
    1000
    1000
    1000 pmt -1000

    1000 Year
    nper 5

    3790.7868 1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11
    12
    13
    14
    15
    16
    17
    18
    19
    20
    21
    22
    23
    24
    25
    26
    27
    28
    29
    30
    Cash Flows
    PVA
    1 ₹ 0.82
    4 ₹ 2.68
    8 ₹ 4.39
    16 ₹ 7.19
    32 ₹ 11.78
    64 ₹ 19.28
    128 ₹ 31.58
    256 ₹ 51.71
    512 ₹ 84.67
    1024 ₹ 138.66
    2048 ₹ 227.06
    4096 ₹ 371.83
    8192 ₹ 608.88
    16384 ₹ 997.08
    32768 ₹ 1,632.76
    65536 ₹ 2,673.73
    131072 ₹ 4,378.38
    262144 ₹ 7,169.82
    524288 ₹ 11,740.94
    1048576 ₹ 19,226.39
    2097152 ₹ 31,484.20
    4194304 ₹ 51,556.99 ₹ 1,000,000.00
    8388608 ₹ 84,427.21
    16777216 ₹ 138,253.87
    33554432 ₹ 226,397.79
    67108864 ₹ 370,737.98
    134217728 ₹ 607,102.42
    268435456 ₹ 994,161.30
    536870912 ₹ 1,627,990.02
    1073741824 ₹ 2,665,917.02
    ₹ 6,847,408.41
    Future value and Simple Interest
    Account A Principle Rate period
    10000 5% 4
    10,000.00 12155.06 FV
    Account B Principle Simple Interest period
    10000 5.25% 4
    10,000.00 12100 SI

    FV M
    PV : ₹ 100.00 PV :
    I: 10% I:
    n: 5 n:
    FV? ₹ 161.05 ₹ 161.05 FV?

    FVA M
    PMT : ₹ 2,000.00 PMT :
    I: 10.00% I:
    n: 35 n:
    FVA? ₹ 542,048.74 ₹ 542,048.74 FVA?
    FVF and FV
    Rate Year Principle FV Factor
    7% 1 10000 1.07
    7% 5 10000 1.4025517307
    7% 10 10000 1.9671513573

    Monthly/Quarterly/Semiannual Compounding
    ₹ 100.00 Monthly/Quarterly/Semiannually
    10% 0.00833333333333 12.00
    5 60.00
    ₹ 164.53 ₹ 164.53

    Monthly/Quarterly/Semiannual Compounding
    ₹ 166.67 Monthly/Quarterly/Semiannually
    10.00% 0.0083333333333 12.00
    35 420
    ₹ 632,785.66 ₹ 632,785.66
    FV
    10700
    14025.517307
    19671.513573
    Rule of 72 Rule of 69
    Interest Period Interest Period
    8.00 9 8.00 8.975

    Inflation
    Nominal rate Inflation rate Real Interest rate
    5.90% 3.30% 2.517%
    Approx 2.60%

    You might also like