resultant rate

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resultant rate

Post  mark on Sun Sep 07, 2008 7:13 pm

since its impossible for a calculator to calculate the future value of both the growth rate and the escalation rate,we use the resultant rate ; [{1 + i / 1 + e } - 1 ] x 100.

The rr is now used to calculate present value of the escalating investment.
by using the PV we can find the future value of the investment ,this time using the actual growth / interest rate.

to comprehend this quantum leap using the RR & the calculator we need to know its its 1st principles so that it can be maths understood and proved logically too.

plse help ??


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