Perpetuties

This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
January 11, 2016 at 9:16 am #294088
ggg1
Member
- Topics: 4
- Replies: 1
Hi John !

Why Examples 7 and Test 5 in Chapter 20 doesnt same calculation method .In Example 7 , answer didn’t added current present value amount . But in Test 5 , Present value 6000 plus . What the different ?
January 11, 2016 at 9:39 am #294100
John Moffat
Keymaster
- Topics: 57
- Replies: 54856
In example 7 the first receipt is in 1 years time.

In test question 5, the first receipt is immediate (i.e. now). The PV of an amount receivable immediately is the same as the amount itself.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.