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Find the rate of interest compounded annually if an annuity immediate at ₹20,000 per year amounts to ₹2,60,000 in 3 years.

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प्रश्न

Find the rate of interest compounded annually if an annuity immediate at ₹20,000 per year amounts to ₹2,60,000 in 3 years.

योग
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उत्तर

Given, C = ₹20,000, A = ₹2,60,000, n = 3 years.

Now, A = `"C"/"i"[(1 + "I")^"n" - 1]`

∴ 2,60,000 = `(20,000)/"i"[(1 + "i")^3 - 1]`

∴ `(2,60,000)/(20,000) = (1)/"i" [1 + 3"i" + 3"i"^2 + "i"^3 - 1]`

∴ 13 = `(3"i" + 3"i"^2 + "i"^3)/"i"`

∴ 13 = 3 +  3i + i2
∴ i2 + 3i – 10 = 0
∴ i2 + 5i – 2i – 10 = 0
∴ i(i + 5) – 2(i + 5) = 0
∴ (i + 5)(i – 2) = 0
∴ i = – 5 or i = 2
But, i cannot be negative.
∴ i = 2
∴ `"r"/(100)` = 2
∴ r = 200% p.a.
∴ The rate of interest is 200% p.a.

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अध्याय 2: Insurance and Annuity - Exercise 2.2 [पृष्ठ २८]

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बालभारती Mathematics and Statistics 2 (Commerce) [English] Standard 12 Maharashtra State Board
अध्याय 2 Insurance and Annuity
Exercise 2.2 | Q 1.09 | पृष्ठ २८

संबंधित प्रश्न

Find the amount accumulated after 2 years if a sum of ₹ 24,000 is invested every six months at 12% p.a. compounded half yearly. [Given (1.06)4 = 1.2625]


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Find the present value of an annuity immediate of ₹36,000 p.a. for 3 years at 9% p.a. compounded annually. [Given (1.09)−3 = 0.7722]


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Find the number of years for which an annuity of ₹500 is paid at the end of every year, if the accumulated amount works out to be ₹1,655 when interest is compounded annually at 10% p.a.


Find the accumulated value of annuity due of ₹1,000 p.a. for 3 years at 10% p.a. compounded annually. [Given (1.1)3 = 1.331]


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Find the present value of an annuity due of ₹ 600 to be paid quarterly at 32% p.a. compounded quarterly. [Given (1.08)−4 = 0.7350]


A person sets up a sinking fund in order to have ₹ 1,00,000 after 10 years. What amount should be deposited bi-annually in the account that pays him 5% p.a. compounded semi-annually? [Given (1.025)20 = 1.675]


Choose the correct alternative :

You get payments of ₹8,000 at the beginning of each year for five years at 6%, what is the value of this annuity?


Fill in the blank :

The person who receives annuity is called __________.


Fill in the blank :

The intervening time between payment of two successive installments is called as ___________.


Fill in the blank :

If payments of an annuity fall due at the end of every period, the series is called annuity __________.


State whether the following is True or False :

Annuity contingent begins and ends on certain fixed dates.


Solve the following :

Find the amount of an ordinary annuity if a payment of ₹500 is made at the end of every quarter for 5 years at the rate of 12% per annum compounded quarterly. [(1.03)20 = 1.8061]


Solve the following :

Find the least number of years for which an annuity of ₹3,000 per annum must run in order that its amount exceeds ₹60,000 at 10% compounded annually. [(1.1)11 = 2.8531, (1.1)12 = 3.1384]


Solve the following :

Find the future value after 2 years if an amount of ₹12,000 is invested at the end of every half year at 12% p. a. compounded half yearly. [(1.06)4 = 1.2625]


Multiple choice questions:

Rental payment for an apartment is an example of ______


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In an ordinary annuity, payments or receipts occur at ______


Multiple choice questions:  

In annuity calculations, the interest is usually taken as ______


State whether the following statement is True or False:

Annuity contingent begins and ends on certain fixed dates


State whether the following statement is True or False:

An annuity where payments continue forever is called perpetuity


In ordinary annuity, payments or receipts occur at ______


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For an annuity due, C = ₹ 2000, rate = 16% p.a. compounded quarterly for 1 year

∴ Rate of interest per quarter = `square/4` = 4

⇒ r = 4%

⇒ i = `square/100 = 4/100` = 0.04

n = Number of quarters

= 4 × 1

= `square`

⇒ P' = `(C(1 + i))/i [1 - (1 + i)^-n]`

⇒ P' = `(square(1 + square))/0.04 [1 - (square + 0.04)^-square]`

= `(2000(square))/square [1 - (square)^-4]`

= 50,000`(square)`[1 – 0.8548]

= ₹ 7,550.40


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