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प्रश्न
State whether the following is True or False:
Annuity certain begins on a fixed date and ends when an event happens.
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उत्तर
This statement is false.
Explanation:
An annuity certain starts on a fixed date and ends on a fixed date, because it is payable for a predetermined period of time. It does not depend on any uncertain event (like death); such dependence is a feature of a contingent annuity.
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संबंधित प्रश्न
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Payment of every annuity is called an installment.
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Multiple choice questions:
Rental payment for an apartment is an example of ______
Multiple choice questions:
In an ordinary annuity, payments or receipts occur at ______
Multiple choice questions:
In annuity calculations, the interest is usually taken as ______
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 ______
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The future value of an annuity is the accumulated values of all instalments
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A 35-year old person takes a policy for ₹ 1,00,000 for a period of 20 years. The rate of premium is ₹ 76 and the average rate of bonus is ₹ 7 per thousand p.a. If he dies after paying 10 annual premiums, what amount will his nominee receive?
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
