sir as in the previous videos of your u shared the facts that we need to increase our intrest in reading book can u pls suggest some good books from your side
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Sir I am just stuck on understanding the below logic. Could you please explain??In the example at 19:53 we have to find the PV of ordinary annuity to be paid 4 times from the end of 3rd year. In the earlier, chapter, in case of ordinary annuity payable EVERY YEAR, you taught that we have to first find and then add the PVs of all the FVs/ annuity payments given, whereas as in this example you have only taught to find the PV of the time 6 to time 2. why we don't have to find the PV of time 5, 4 and 3 to 2 and add then all of the PVs as their payable annually EVERY YEAR, to arrive at the PV at time 2 then discount it to time zero???am confused, please explain the logic behind it?My understanding is although the annuity is paid since 3rd year, its paid for 4 years thereon and not just on the 4th year.I am stuck on it to see the logic, otherwise just mugging up is not an issue, which I don't want.Can you please explain??Thanks a lotExpect your valuable response
Your point of calculating PV separately for each annuity is correct when the annuity amount is different for each year. However, in the above case, the annuity amount is same 100 for each of the 4 year, so we calculate the PV using the formula PMT=100, N=4, I/Y = 9, FV=0. This will calculate PV at the beginning of 2nd year which is end of 1st year. Then you have to calcualate the PV again at the beginning of the period in which your earlier calculated PV become FV now, PMT=0, N=2, I=9.
Sir @45.25 my answer is PV= 950.67. And when I trying entering 960.07 PV, N=5, PMT=70 and FV=-1000 just to check the answer. I/Y is coming out to be7.77%. Please check and let me know if I am wrong.
sir as in the previous videos of your u shared the facts that we need to increase our intrest in reading book can u pls suggest some good books from your side
Hi, hope you liked the lecture.
Follow us on Instagram for continuous Mentoring on growth, productivity, growth lifestyle and stay updated on what I am reading, learning and applying.
instagram.com/aswinibajaj/
Invest In Yourself!
Aswini Bajaj
+91 98311 49876
(WhatsApp if you have any query please)
Sir I am just stuck on understanding the below logic. Could you please explain??In the example at 19:53 we have to find the PV of ordinary annuity to be paid 4 times from the end of 3rd year. In the earlier, chapter, in case of ordinary annuity payable EVERY YEAR, you taught that we have to first find and then add the PVs of all the FVs/ annuity payments given, whereas as in this example you have only taught to find the PV of the time 6 to time 2. why we don't have to find the PV of time 5, 4 and 3 to 2 and add then all of the PVs as their payable annually EVERY YEAR, to arrive at the PV at time 2 then discount it to time zero???am confused, please explain the logic behind it?My understanding is although the annuity is paid since 3rd year, its paid for 4 years thereon and not just on the 4th year.I am stuck on it to see the logic, otherwise just mugging up is not an issue, which I don't want.Can you please explain??Thanks a lotExpect your valuable response
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Your point of calculating PV separately for each annuity is correct when the annuity amount is different for each year. However, in the above case, the annuity amount is same 100 for each of the 4 year, so we calculate the PV using the formula PMT=100, N=4, I/Y = 9, FV=0. This will calculate PV at the beginning of 2nd year which is end of 1st year. Then you have to calcualate the PV again at the beginning of the period in which your earlier calculated PV become FV now, PMT=0, N=2, I=9.
Consider it as uneven cash flows,
CF0=0,C01=0,C02=0,
C03=100,C04=100,C05=100,C06=100,
N=6, I/Y=9,
and CPT NPV
Sir @45.25 my answer is PV= 950.67.
And when I trying entering 960.07 PV, N=5, PMT=70 and FV=-1000 just to check the answer.
I/Y is coming out to be7.77%.
Please check and let me know if I am wrong.
Hi Avinash,
Thank you for watching our videos.
For more details please WhatsApp us +91 9831149876
avinash singh PV = -960.07, PMT =70, FV =1000 & n=5 >>>CPT I/y