CT1: Chapter 1 section 2.5: Cashflow example Equity

Discussion in 'CT1' started by Yennie, Feb 2, 2017.

Tags:
  1. Yennie

    Yennie Member

    Hello smart people, please help!

    I am looking at my CT1 2014 notes. Referring to Chapter 1 Section 2.5 on An Equity. (attached image)

    My question is….
    Can I ask how did the author derived at £6,615 sale price? I am soOo confused :(
     
    Yennie, Feb 2, 2017
    #1
  2. Yennie

    Yennie Member

    Sorry! I think I kind of solved it! ALL GOOD nows! Thanks!!!

    Answer: 6,615 is a compounded % of 5% p.a since year 0 :)
     
    Yennie, Feb 2, 2017
    #2

Share This Page