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प्रश्न
In an ordinary annuity, payments or receipts occur at ______.
विकल्प
Beginning of each period
End of each period
Mid of each period
Quarterly basis
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उत्तर
In an ordinary annuity, payments or receipts occur at end of each period.
Explanation:
Payments are made at the conclusion of each period (such as a month, quarter, or year) in an ordinary annuity. Bond interest payments, mortgage payments, and loan payments are typical instances. As a result, payments for an annuity due are made at the start of each period.
संबंधित प्रश्न
A lady plans to save for her daughter’s marriage. She wishes to accumulate a sum of ₹ 4,64,100 at the end of 4 years. What amount should she invest every year if she gets an interest of 10% p.a. compounded annually? [Given (1.1)4 = 1.4641]
A person wants to create a fund of ₹ 6,96,150 after 4 years at the time of his retirement. He decides to invest a fixed amount at the end of every year in a bank that offers him interest of 10% p.a. compounded annually. What amount should he invest every year? [Given (1.1)4 = 1.4641]
Find the rate of interest compounded annually if an annuity immediate at ₹20,000 per year amounts to ₹2,60,000 in 3 years.
A person plans to put ₹400 at the beginning of each year for 2 years in a deposit that gives interest at 2% p.a. compounded annually. Find the amount that will be accumulated at the end of 2 years.
For an annuity immediate paid for 3 years with interest compounded at 10% p.a., the present value is ₹24,000. What will be the accumulated value after 3 years? [Given (1.1)3 = 1.331]
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?
Choose the correct alternative :
Amount of money today which is equal to series of payments in future is called
______ is a series of constant cash flows over a limited period of time.
Fill in the blank :
The payment of each single annuity is called __________.
Fill in the blank :
If payments of an annuity fall due at the beginning of every period, the series is called annuity __________.
State whether the following is True or False :
Payment of every annuity is called an installment.
State whether the following is True or False :
Annuity contingent begins and ends on certain fixed dates.
State whether the following is True or False :
The future value of an annuity is the accumulated values of all installments.
Solve the following :
A shopkeeper insures his shop and godown valued at ₹5,00,000 and ₹10,00,000 respectively for 80 % of their values. If the rate of premium is 8 %, find the total annual premium.
Solve the following :
Find the rate of interest compounded annually if an ordinary annuity of ₹20,000 per year amounts to ₹41,000 in 2 years.
Solve the following :
A person purchases a television by paying ₹20,000 in cash and promising to pay ₹1,000 at end of every month for the next 2 years. If money is worth 12% p. a. converted monthly, find the cash price of the television. [(1.01)–24 = 0.7875]
Solve the following :
Find the present value of an annuity immediate of ₹20,000 per annum for 3 years at 10% p.a. compounded annually. [(1.1)–3 = 0.7513]
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:
In an ordinary annuity, payments or receipts occur at ______
Multiple choice questions:
The present value of an immediate annuity of ₹ 10,000 paid each quarter for four quarters at 16% p.a. compounded quarterly is ______
State whether the following statement is True or False:
The future value of an annuity is the accumulated values of all instalments
State whether the following statement is True or False:
An annuity where payments continue forever is called perpetuity
An annuity in which each payment is made at the end of period is called ______
A company decides to set aside a certain sum at the end of each year to create a sinking fund, which should amount to ₹ 4 lakhs in 4 years at 10% p.a. Find the amount to be set aside each year?
[Given (1.1)4 = 1.4641]
For annuity due,
C = ₹ 20,000, n = 3, I = 0.1, (1.1)–3 = 0.7513
Therefore, P = `square/0.1 xx [1 - (1 + 0.1)^square]`
= 2,00,000 [1 – 0.7513]
= ₹ `square`
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
