## angela210793 3 years ago 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?

1. angela210793

hang on a sec

2. angela210793

I don't get it O.o :(

3. angela210793

Annam terms? what's that?

4. angela210793

so its PVA?

5. sheg

no

6. angela210793

O.o What is it then? O.o

7. angela210793

8. angela210793

ok...then what?

9. angela210793

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

10. sheg

oh in this question is discounting rate given ???

11. angela210793

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

12. angela210793

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

13. angela210793

ok ok

14. angela210793

:( ok thanks anyway :)))

15. sheg

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 %

16. angela210793

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

17. sheg

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 %

18. sheg

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

19. sheg

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

20. angela210793

yea O.o

21. sheg

ok PV = ?? 20 or, 35

22. angela210793

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

23. angela210793

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

24. sheg

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