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angela210793

  • 2 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?

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  1. angela210793
    • 2 years ago
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    hang on a sec

  2. angela210793
    • 2 years ago
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    I don't get it O.o :(

  3. angela210793
    • 2 years ago
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    Annam terms? what's that?

  4. angela210793
    • 2 years ago
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    so its PVA?

  5. sheg
    • 2 years ago
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    no

  6. angela210793
    • 2 years ago
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    O.o What is it then? O.o

  7. angela210793
    • 2 years ago
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    the return today i guess

  8. angela210793
    • 2 years ago
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    ok...then what?

  9. angela210793
    • 2 years ago
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    :O how's that??? we've never solved a problem in this way O.o :( I'm gonna fail :(((((

  10. sheg
    • 2 years ago
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    oh in this question is discounting rate given ???

  11. angela210793
    • 2 years ago
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    no...i wrote it exactly as it is written in my w-book....

  12. angela210793
    • 2 years ago
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    is there any way solving this using PV or FV or anything like this?

  13. angela210793
    • 2 years ago
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    ok ok

  14. angela210793
    • 2 years ago
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    :( ok thanks anyway :)))

  15. sheg
    • 2 years ago
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    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
    • 2 years ago
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    I actually had this solved in my notebook and my teacher had solved this using PV=FV*PVIF

  17. sheg
    • 2 years ago
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    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
    • 2 years ago
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    first i had taken the layman's approach and in that i was ignoring the discounting factor

  19. sheg
    • 2 years ago
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    hey hang on you have written PV = FV * PVIF is that so

  20. angela210793
    • 2 years ago
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    yea O.o

  21. sheg
    • 2 years ago
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    ok PV = ?? 20 or, 35

  22. angela210793
    • 2 years ago
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    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
    • 2 years ago
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    yea yea :) thanks :) going to eat now :) cya :)

  24. sheg
    • 2 years ago
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    ^^^^^ see above i had solved that using discounting factor too above

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