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What is the present value of an annuity due of ₹ 1,500 for 16 years at 8% per annum? What is the present value of an annuity due of ₹ 1,500 for 16 years at 8% per annum? [(1.08)16 = 3.172] - Business Mathematics and Statistics

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प्रश्न

What is the present value of an annuity due of ₹ 1,500 for 16 years at 8% per annum? What is the present value of an annuity due of ₹ 1,500 for 16 years at 8% per annum? [(1.08)16 = 3.172]

बेरीज
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उत्तर

Present value of annuity due, P = `(a (1 + i))/i [1 - 1/(1 + i)^n]`

Here a = 1500, n = 16, i = `8/100` = 0.08

P = `(1500 (1 + 0.08))/(8/100) [1 - 1/(1.08)^16]`

= `(1500 xx 100 xx (1.08))/8 [1 - 1/3.172]`      ...[∵ (1.08)16 = 3.172]

= `162000/8 [1 - 1/3.172]`

= `20250 [1 - 0.31524]`

= 20250 [0.68476]

= 13866.39

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पाठ 7: Financial Mathematics - Exercise 7.1 [पृष्ठ १६७]

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सामाचीर कलवी Business Mathematics and Statistics [English] Class 11 TN Board
पाठ 7 Financial Mathematics
Exercise 7.1 | Q 9 | पृष्ठ १६७

संबंधित प्रश्‍न

Find the amount of an ordinary annuity of 12 monthly payments of ₹ 1,500 that earns interest at 12% per annum compounded monthly. [(1.01)12 = 1.1262]


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Find the amount of an ordinary annuity of ₹ 500 payable at the end of each year for 7 years at 7% per year compounded annually. [(1.07)7 = 1.6058]


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A cash prize of ₹ 1,500 is given to the student standing first in examination of Business Mathematics by a person every year. Find out the sum that the person has to deposit to meet this expense. Rate of interest is 12% p.a.


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