CA FOUNDATION | CHAPTER -4 | TIME VALUE OF MONEY | EXERCISE-4C | MATHS MODE | SANTOSH SIR

Maths Mode・2 minutes read

The text teaches children the foundation of time value of money through solving exercises, emphasizing finding present values based on given values and formulas. Detailed steps and calculations are provided for various scenarios, culminating in final answers for each question.

Insights

  • Understanding the time value of money is crucial, especially when calculating present values for future amounts using specific formulas and detailed steps.
  • The iterative process of adjusting values and making precise calculations is essential in arriving at accurate financial results, demonstrating the meticulous nature of financial computations.

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Recent questions

  • How is the time value of money explained?

    It is taught to children with exercise 4c.

  • What is the task involving NNT and R values?

    Finding the present value for 3 and 15 years.

  • What formulas are used for present value calculations?

    Four formulas, with one highlighted for calculations.

  • How are present value calculations solved?

    Detailed steps are provided for each calculation.

  • What is the significance of adjusting negative values in calculations?

    Adjusting negative values ensures accurate results.

Related videos

Summary

00:00

Teaching Time Value of Money to Children

  • The foundation of time value of money is taught to children, focusing on solving exercise 4c in complete detail.
  • Previous exercises and an introduction part are referenced, emphasizing the importance of watching them for understanding.
  • The task at hand is to find the present value based on given values of NNT and R for 3 years and 15 years, respectively.
  • Four formulas are mentioned, with a specific formula highlighted for present value calculations.
  • The first question involves finding the present value of Rs. 3000 for 15 years at a 4.5% rate.
  • Detailed steps are provided for solving the present value calculation using the formula.
  • The final answer for the first question is determined to be approximately Rs. 32,218.63.
  • The second question involves finding the present value of Rs. 1542 per annum at a 3.5% rate for 12 years.
  • The formula for present value calculation is reiterated, leading to the answer of Rs. 2,190.29 for the second question.
  • Subsequent questions involve finding present values for different amounts and time periods, with detailed steps provided for each calculation.

20:04

"Mathematical Calculation: Finding Correct Interest Amount"

  • Adjust the negative value in Race 2 to 1.05 by subtracting 0.5, then multiply by N to get 1.052.
  • Continue the calculation by multiplying 1.05 until reaching the answer, which is 1.979 after 14 iterations.
  • Choose the middle answer, 14.2, as the correct one between 1.97 and 2.07.
  • Solve the exercise by dividing 5120 by 7290 to get ₹2170, representing the interest.
  • Calculate the annual amount standing at 10% interest to be ₹5000, resulting in ₹3560 as the final answer.
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