Adding & Subtracting Interest rates

answered 2 days ago

Hi sir, In all the previous cases whenever we add interest rates we will multiply them{(1+5%)(1+6%)}, whenever we subtract them we will divide the rates{(1+5%)/(1+6%)}. But here when rupee is appreciating the return will reduce so we should subtract rates, so we should divide them. but why here instead of dividing we multiplied but with "-" sign i.e (1+6%)*(1-3%)?

latest answer

Here also we are doing the same If int rate is -3% We multiply by( 1 - 3% )and if int rate is 3% then we multiply by (1+3%) In foundation you would have learnt abt gross profit computation Think of 25% gross profit on sale price or on cost price If SP is 100 then gp is 25 if gp is 25 % of SP and CP is 75% of SP CP = SP (1-GP%) IF SP IS 100 then GP IS 20 if GP IS 25% of CP and CP IS 80 CP = SP / (1+GP%) Same logic like above applies in the current case also When does one multiply 100

B. Dinesh

CA Final

★ 3K+

1

19

Downside Risk

answered 2 days ago

What is mean by downside risk???

latest answer

Loss 😀

Surya Prakash

CA Final

★ 14K+

3

26

calculator

answered 23 hrs ago

which type of calculator should purchase for CA foundation

latest answer

https://www.amazon.in/Casio-MJ-12D-Desktop-Calculator-Grey/dp/B0752LL57V/ref=sr_1_3?crid=2IK27WGXRQ188&dib=eyJ2IjoiMSJ9.CLfic0cyeENaQf3bwKzSqOPqfBZlHsEbKBtQkgm3U2LAppzrwuRbhBZEEgxH80PJLY0Ifk6_CLmfPT7Hdnf7P-3XQh_rl66BTNA5B15xsXXExieCGWZfqpSY1wAPDuyWOptOZeXLvlMjnXpW0vgSuA9cAuQIGZxTpy99Qa7xTyKHLyXcdBDu_yZfHXvQ3_7nEL7nP8oRaliNJ2IqzJFv9cnAISIMkB6wpq0w4_6El0w.vJynsw-bkXvv4bgCids_7lQZk6dUgnq7TjyZtZjMSrg&dib_tag=se&keywords=citizen+calculator&qid=1717937648&sprefix=citizen+%2Caps%2C221&sr=8-3 or this https://www.amazon.in/Orpat-OT-512GT-Calculator-Black/dp/B01I1AZJ1K/ref=sr_1_4?crid=2IK27WGXRQ188&dib=eyJ2IjoiMSJ9.CLfic0cyeENaQf3bwKzSqOPqfBZlHsEbKBtQkgm3U2LAppzrwuRbhBZEEgxH80PJLY0Ifk6_CLmfPT7Hdnf7P-3XQh_rl66BTNA5B15xsXXExieCGWZfqpSY1wAPDuyWOptOZeXLvlMjnXpW0vgSuA9cAuQIGZxTpy99Qa7xTyKHLyXcdBDu_yZfHXvQ3_7nEL7nP8oRaliNJ2IqzJFv9cnAISIMkB6wpq0w4_6El0w.vJynsw-bkXvv4bgCids_7lQZk6dUgnq7TjyZtZjMSrg&dib_tag=se&keywords=citizen+calculator&qid=1717937648&sprefix=citizen+%2Caps%2C221&sr=8-4

RAVITEJA MERUGU

CA Foundation

★ 490

3

47

Financial Derivatives

answered 2 days ago

Mr. Rudson, a manager has a portfolio (with beta value 1) of ₹ 50 lacs consisting of 80% in stocks and the rest in cash. He wishes to use index futures to alter his beta. Assuming that the current index is 4,700 and the index futures (lot of 200) is quoted at 4,800. Required: Explain his strategy if he wishes to (i) Increase the portfolio beta to 1.60. (ii) Decrease the portfolio beta to 0.8. If he desired the above beta values, what should he do if he may include G-sec in his portfolio to alter that beta instead of futures? Can anyone give an answer for this part of question ? "If he desired the above beta values, what should he do if he may include G-sec in his portfolio to alter that beta instead of futures?"

latest answer

Pls check p600+ we have a similar question solved in class videos as well as notes

Prasanna kumar Tamilarasu

CMA Final

★ 0

1

36

SET A ch3( Managerial personnel)

answered 2 days ago

How is remuneration calculated

latest answer

Maam ICAI ans is (b). How is that calculated

Akella Deepthi Sivani

CA Final

★ 10K+

2

44

LIBOR is for 6 months

answered 2 days ago

Hi sir, here 2% is 6 months LIBOR, so while computing interest for 6 months, no need of multiplying with 6/12 right ?

latest answer

FD rate for 1 year is 8% and fd rate for 2 years is 9% so will u get 9% pa or 9% for both years combined? Pls check in any bank website for various periods / yearly interest rates Interest rates are always quoted per annum

B. Dinesh

CA Final

★ 3K+

3

32

Can We do directly?

answered on 07-Jun-24 16:57

Here they given semi annually but for current year can we do directly 14/90*100=15.55 Also while cal YTM we can any random number rather than 7.5 and 9

latest answer

Yes to both

Surya Prakash

CA Final

★ 14K+

1

34

Is reason for answer is true??

answered on 07-Jun-24 16:58

For Bond X : Macaulay Duration is 4.49yrs For Bond Y:: Macaulay Duration is 4.64yrs Can we directly select Bond A as Macaulay Duration is low

latest answer

Yes you can

Surya Prakash

CA Final

★ 14K+

1

29

capital gains

answered 1 day ago

If in the question they haven't mentioned anything about whether STT is paid or not, then what should we assume to proceed the question of capital gains?

latest answer

Not paid. Question must specify that STT is paid.

Niveta Rajkumar

CA Inter

★ 160

2

45

Calculate Machine hour rate

answered 2 days ago

Please show me the steps for getting the answer 1.74

latest answer

Thank you

Reja Fathima

CA Inter

★ 4K+

2

41