RE: || VU Experts 2009 || Required financial Management GDB

No GDB

 

Best Regards

 

Bilal Farooq

 

MBA 2nd Semester

Chakwal

 

From: vu_experts01@googlegroups.com [mailto:vu_experts01@googlegroups.com] On Behalf Of mc090400239 Amir Saleem
Sent: Wednesday, April 28, 2010 12:01 PM
To: vu_experts01@googlegroups.com
Subject: Re: || VU Experts 2009 || Required financial Management GDB

 

That A Assignment?

On Wed, Apr 28, 2010 at 11:57 AM, Bilal Farooq <bilal.zaheem@gmail.com> wrote:

This is the solution provided by Asad Munir ...check in your email...take it as an idea....make your own plz

 

1,500,000 = 9000 [(1+i/2)^10*2-1] 19%

1,500,000 = 2000 [(1+i/3)^10*3-1] 18%

 

18 % is the favourable option because we can get same 

result with small amount of money. in first option

 we ll pay 9000 * 20 = 180 000 and in second we ll pay 2000 * 30 = 60 000 

in 10 years and the result is same 15 00 000. so second option is favourable

 

 

 

18 wala theek hay bcoz if u convert it compounded yearly rate then it comes 

almost 53.20% and the other one comes 38.12% and moreover in 2nd case u invest

 only 60000 whereas in the first option u have to invest 180000 so in second 

option u will get more profit with less investment