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T = 3/2 years; Since interest is compounded half-yearly, R = 4/2 = 2% p.a. and T = 2t years A = P [1+ (R/100) ]t ⇒ 26,530.20 = 25,000 [1+ (2/100) ]2t ⇒ (26530.20/25000) = (102/100) 2t ⇒ (132651/125000) = (102/100) 2t ⇒ (51/50) 3 = (51/50) 2t ⇒ 2t = 3 yrs ⇒ t = 3/2 years = 1 year and 6 months
What will be the impact on Return on Equity (RoE) if cash is paid to the creditors?
Akash Ltd sells 3 products X, Y and Z. The following information was available at the year end :