As the financial year closed on 30 June, Income Tax Return Filling 2023 in Pakistan has started. Any taxable person whether individual, association of persons (AOP) or company are required to file return of total income with Federal Board of…
In our previous post, we covered the main important topic of Hire Purchase. Now, we will highlight the Difference between Hire Purchase and Installment Sale. Installment Sales Hire Purchase 1. The ownership of the asset is transferred at the time of…
If you purchase an asset, you have many options as to the payment. One is the cash basis and the other is credit basis. In cash basis, you pay no amount of interest. However, on credit basis, you would be…
Future Value of Annuity is an important finance topic and getting to know about this will definitely help you out in various finance related problems. As we have already discussed about Annuity in our Present value of Annuity post, we do not…
It is the amount that will be obtained in the future if we invest a given amount of money for a set period of time at a given interest rate. In other words, we can say that: Future value =…
By the single sum of money, we mean the future value which is discounted using the discount rate/ interest rate to calculate the present value (PV). In other words, we can say that Future value = PV + Compound interest…
Annuity is an extention of the compound interest. In compound interest, we deposit single sum of money and earns the interest. However, in annuity we redeposit the similar sum of money. When we deposit or withdraw an equal sum of…
I have seen many issues for finance professionals and students in search of a way to calculate the number of payments in a loan. One way that we have discussed is via the NPER function in MS Excel. Today, we are going…
Compound interest is simply defined as interest on interest. It is keeps charging interest on the previous period interest amount. So, the amount of principal keeps rising. In the first year, compound interest is equal to compound interest. In later…
Simple interest is the easiest method of calculating interest on a loan. It calculates interest on a daily basis, that is why, if the borrower pays installment of the loan well before the due date, more of the amount charges…