Re: jnu

Posted by a.m on May 09, 2012; 2:59am
URL: http://discussion-forum.276.s1.nabble.com/jnu-tp7463007p7541533.html

@ Neha and Vasudha : This question really doesnt get into my head. I understand that you've raised the first part to the power 0.5 because that is what we get after 6 months. Which is half a year ,right ? Hence 0.5 !?

Now this other question that i came across, asks :

Option 1: you receive Rs112 after one year.
Option 2: You receive rs 55 after nine months and rs 56 after one year.

Given that the market rate of interest is 12% p.a. which option is better.?

How do we go about this ? As in how do we calculate the present value for 9 months ?