Question

10 years ago A bought a share for 20$ and sold it today for 35$.What is the rate of profit he had from this investment. I thought to use PV=FV*FVIF where PV=35 and PV=20 and then calculate FVIF..is this right?

Answer 1

hang on a sec

Answer 2

I don't get it O.o :(

Answer 3

Annam terms? what's that?

Answer 4

so its PVA?

Answer 5

no

Answer 6

O.o What is it then? O.o

Answer 7

the return today i guess

Answer 8

ok...then what?

Answer 9

:O how's that??? we've never solved a problem in this way O.o :(
I'm gonna fail :(((((

Answer 10

oh in this question is discounting rate given ???

Answer 11

no...i wrote it exactly as it is written in my w-book....

Answer 12

is there any way solving this using PV or FV or anything like this?

Answer 13

ok ok

Answer 14

:( ok thanks anyway :)))

Answer 15

see the thing which u were saying was including the interest factor right

Future value = Present Value *(1 + K)^n
35 = 20*(1+k)^10
on solving this one u will get
k = 0.0575
Rate of return = 5.75 %

Answer 16

I actually had this solved in my notebook and my teacher had solved this using PV=FV*PVIF

Answer 17

Future value = Present Value *(1 + K)^n 35 = 20*(1+k)^10 on solving this one u will get k = 0.0575 Rate of return = 5.75 %

Answer 18

first i had taken the layman's approach and in that i was ignoring the discounting factor

Answer 19

hey hang on
you have written
PV = FV * PVIF
is that so

Answer 20

yea O.o

Answer 21

ok PV = ?? 20 or, 35

Answer 22

PV=20 FV=35 PVIF is wht i have to find...which means i waas right except the fact tht instead of writing PVIF i wrote FVIF

Answer 23

yea yea :) thanks :)
going to eat now :) cya :)

Answer 24

^^^^^ see above i had solved that using discounting factor too above