Advertisements
Advertisements
Question
A bank pays 8% per annum interest compounded quarterly. Find the equal deposits to be made at the end of each quarter for 10 years to have ₹ 30,200? [(1.02)40 = 2.2080]
Advertisements
Solution
Here A = ₹ 30200, i = `8/100`
`"i"/"k" = (8/100)/4 = 2/100` = 0.02, n = 10, k = 4
A = `"a"/("i"/"k") [(1 + "i"/"k")^("nk") - 1]`
30200 = `"a"/0.02 [(1 + 0.02)^40 - 1]`
30200 = `("a" xx 100)/2 [(1.02)^40 - 1]`
30200 = `("a" xx 100)/2 [2.2080 - 1]`
`(30200 xx 2)/100` = a[1.2080]
302 × 2 = a[1.2080]
a = `(302 xx 2)/1.2080`
= ₹ 500
APPEARS IN
RELATED QUESTIONS
Find the amount of an ordinary annuity of ₹ 3,200 per annum for 12 years at the rate of interest of 10% per year. [(1.1)12 = 3.1384]
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]
Find the amount at the end of 12 years of an annuity of ₹ 5,000 payable at the beginning of each year, if the money is compounded at 10% per annum. [(1.1)12 = 3.1384]
₹ 5000 is paid as perpetual annuity every year and the rate of C.I. 10%. Then present value P of immediate annuity is __________.
An annuity in which payments are made at the beginning of each payment period is called ___________.
Example of contingent annuity is ___________.
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]
Find the amount of an ordinary annuity of ₹ 600 is made at the end of every quarter for 10 years at the rate of 4% per year compounded quarterly. [(1.01)40 = 1.4889]
Find the amount of an annuity of ₹ 2000 payable at the end of every month for 5 years if money is worth 6% per annum compounded monthly. [(1.005)60 = 1.3489]
Naveen deposits ₹ 250 at the end of each month in an account that pays an interest of 6% per annum compounded monthly, how many months will be required for the deposit to amount to at least ₹ 6390? [log(1.1278) = 0.0523, log(1.005) = 0.0022]
