Equation of Value (Mathematics of Finance)|Practical Problems Part -1
Solutions to two important practical problems of Equation of Value is discussed.
Kindly consider the correction in solution to Question 1.
Value of debts = value of payments
6000(1.03)^2 + 10000(1.03)^(-8) = 2000(1.03)^8 + X(1.03)^(-6) + 5000
14259.4 = 7544.4 + 0.8374 X
X = 6726/ 0.8374
X = Rs. 5263.22
SORRY for Inconvenience.
Link for calculating Future Value Factor(compound factor) and Present value factor(discount factor) using calculator - • Future Value and Present Value Factor usin...