Business Mathematics, Logical Reasoning and Statistics
Permutations and Combinations
5% weightage

PV & FV

Complete study guide with 3 practice questions, detailed explanations, and expert solutions for PV & FV in CA Foundation Business Mathematics, Logical Reasoning and Statistics.

Practice Questions

3
Total Questions
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Medium
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Hard
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Study Notes: PV & FV

Free study material for CA Foundation Business Mathematics, Logical Reasoning and StatisticsPermutations and Combinations

Present value (PV) and future value (FV): FV = PV(1 + r)^n (compound interest forward); PV = FV/(1+r)^n (discount backward). r = discount/interest rate per period; n = number of periods. Example: FV=1000 after 3 years at 10%. PV = 1000/(1.1)³ = 751.31. Annuities: Series of equal payments at regular intervals. Present value of annuity: PV = A × [(1-(1+r)^(-n))/r]. Future value of annuity: FV = A × [((1+r)^n - 1)/r]. Where A = periodic payment. Exam tip: Distinguish between lump sum and annuity problems. Read timing carefully (beginning vs end of period). Use calculator for large powers efficiently.

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