angela210793
  • angela210793
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?
Economics - Financial Markets
  • Stacey Warren - Expert brainly.com
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SOLVED
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katieb
  • katieb
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angela210793
  • angela210793
hang on a sec
angela210793
  • angela210793
I don't get it O.o :(
angela210793
  • angela210793
Annam terms? what's that?

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angela210793
  • angela210793
so its PVA?
anonymous
  • anonymous
no
angela210793
  • angela210793
O.o What is it then? O.o
angela210793
  • angela210793
the return today i guess
angela210793
  • angela210793
ok...then what?
angela210793
  • angela210793
:O how's that??? we've never solved a problem in this way O.o :( I'm gonna fail :(((((
anonymous
  • anonymous
oh in this question is discounting rate given ???
angela210793
  • angela210793
no...i wrote it exactly as it is written in my w-book....
angela210793
  • angela210793
is there any way solving this using PV or FV or anything like this?
angela210793
  • angela210793
ok ok
angela210793
  • angela210793
:( ok thanks anyway :)))
anonymous
  • anonymous
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 %
angela210793
  • angela210793
I actually had this solved in my notebook and my teacher had solved this using PV=FV*PVIF
anonymous
  • anonymous
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 %
anonymous
  • anonymous
first i had taken the layman's approach and in that i was ignoring the discounting factor
anonymous
  • anonymous
hey hang on you have written PV = FV * PVIF is that so
angela210793
  • angela210793
yea O.o
anonymous
  • anonymous
ok PV = ?? 20 or, 35
angela210793
  • 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
angela210793
  • angela210793
yea yea :) thanks :) going to eat now :) cya :)
anonymous
  • anonymous
^^^^^ see above i had solved that using discounting factor too above

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