Find the present value of KTC share which is expected to earn Rs. 10.50 every six months, if money is worth 8% compounded annually.
Answers
Given : share which is expected to earn Rs. 10.50 every six months, money is worth 8% compounded annually
To Find : present value of KTC share
Solution:
Let say present Value = P
money is worth 8% compounded annually
Earning in 6 months = Rs 10.5
Time = 6 month = (1/2) Years
Earning = Interest = P * R * T / 100
10.5 = P * 8 * (1/2) /100
=> P = 25 x 10.5
=> P = 262.5
present value of KTC share is Rs 262.5 which is expected to earn Rs. 10.50
Learn More;
I. Find the present value of $1000 received every month end for 20 ...
https://brainly.in/question/18157228
11. The value of a T.V., purchased two yearsago, depreciates at 12 ...
https://brainly.in/question/13180980
Given :
share which is expected to earn Rs. 10.50 every six months, money is worth 8% compounded annually
To Find :
present value of KTC share
Solution:
Let say present Value = P
money is worth 8% compounded annually
Earning in 6 months = Rs 10.5
Time = 6 month = (1/2) Years
Earning = Interest = P * R * T / 100
10.5 = P * 8 * (1/2) /100
=> P = 25 x 10.5
=> P = 262.5
present value of KTC share is Rs 262.5 which is expected to earn Rs. 10.50
Hope it helps ❤︎