Re: jnu

Posted by neha. on May 08, 2012; 9:00am
URL: http://discussion-forum.276.s1.nabble.com/jnu-tp7463007p7538349.html

The rate of interest given should be assumed as effective rate of interest ( as nothing is given) in which case (1+ i)^0.5 should be used for both, accumulated value and present value,,

Had it been nominal rate of interest convertible semi annually,, it should have been divided by 2, and (1+i) & (1+i)^2  would have been used.