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State whether the following statement is True or False: The relation between accumulated value ‘A’ and present value ‘P’ is A = P(1+ i)n

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प्रश्न

State whether the following statement is True or False:

The relation between accumulated value ‘A’ and present value ‘P’ is A = P(1+ i)n 

विकल्प

  • True

  • False

MCQ
सत्य या असत्य
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उत्तर

True

shaalaa.com
Annuity
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 2.2: Insurance and Annuity - Q.2

संबंधित प्रश्न

Find the accumulated (future) value of annuity of ₹ 800 for 3 years at interest rate 8% compounded annually. [Given (1.08)3 = 1.2597]


A person invested ₹ 5,000 every year in finance company that offered him interest compounded at 10% p.a., what is the amount accumulated after 4 years? [Given (1.1)4 = 1.4641]


Find accumulated value after 1 year of an annuity immediate in which ₹ 10,000 is invested every quarter at 16% p.a. compounded quarterly. [Given (1.04)4 = 1.1699]


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 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]


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.


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


In an ordinary annuity, payments or receipts occur at ______. 


Fill in the blank :

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


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 certain begins on a fixed date and ends when an event happens.


State whether the following is True or False :

Annuity contingent begins and ends on certain fixed dates.


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 :

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 :

A man borrowed some money and paid back in 3 equal installments of ₹2,160 each. What amount did he borrow if the rate of interest was 20% per annum compounded annually? Also find the total interest charged. [(1.2)3 = 0.5787]


Solve the following :

A company decides to set aside a certain amount at the end of every year to create a sinking fund that should amount to ₹9,28,200 in 4 years at 10% p.a. Find the amount to be set aside every year. [(1.1)4 = 1.4641]


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]


Solve the following :

After how many years would an annuity due of ₹3,000 p.a. accumulated ₹19,324.80 at 20% p. a. compounded yearly? [Given (1.2)4 = 2.0736]


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


If for an immediate annuity r = 10% p.a., P = ₹ 12,679.46 and A = ₹ 18,564, then the amount of each annuity paid is ______


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


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. [Given (1.03)20 = 1.8061]


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]


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