Multiple Choice Questions

Find the present value of the following cash flows at 10 p a Year end ...........

Finance (Phase -I & II) Others

Find the present value of the following cash flows at 10% p.a.

Year end : 2 4 6 8

Amount : 1,000 2,000 2,500 2,000

4,220 (approx.)

4,100 (approx.)

4,123 (approx.)

4,100 (approx.)

Sol:

P =1,000 + 2,000 + 2,500 + 2,000

(1+10/100)² (1+10/100)⁴ (1+10/100)⁶ (1+10/100)⁸

= 1,000 + 2,000 + 2,500 + 2,000

1.21 1.61 1.95 2.36

= Rs.4,123 (approx.)

Submit Error

Answer is wrong {(1+10)/100}^2 comes to 1.121

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