CT1 April 2001 Q2 TWRR

Discussion in 'CT1' started by Faith Nyanchama, Jul 31, 2017.

  1. Faith Nyanchama

    Faith Nyanchama Member

    Hello guys
    In the question....how do we determine the cash flow and the value of fund before...is f(t)
     

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    Faith Nyanchama, Jul 31, 2017
    #1
  2. John Lee

    John Lee ActEd Tutor Staff Member

    I'm confused. The question tells us the value of the fund before (30 June) the cashflows (1 July).
     
    John Lee, Aug 4, 2017
    #2
  3. Faith Nyanchama

    Faith Nyanchama Member

    Yes... I thought so too... So what casflows do we use to find the value
     
    Faith Nyanchama, Aug 4, 2017
    #3
  4. John Lee

    John Lee ActEd Tutor Staff Member

    What value?
     
    John Lee, Aug 4, 2017
    #4
  5. Chandrima

    Chandrima Member

    460/400 * 500/(460+50) * 650/(500+40) * X/(650+60)
    Equate the above with 1.11^3
     
    Chandrima, Aug 7, 2017
    #5

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