Maharashtra State BoardHSC Commerce 12th Board Exam
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An annuity immediate is to be paid for some years at 12% p.a. The present value of the annuity is ₹10,000 and the accumulated value is ₹20,000. Find the amount of each annuity payment. - Mathematics and Statistics

Sum

An annuity immediate is to be paid for some years at 12% p.a. The present value of the annuity is ₹10,000 and the accumulated value is ₹20,000. Find the amount of each annuity payment.

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Solution

Given, P = ₹10,000, r = 12% p.a., A = ₹20,000

∴ i = `"r"/(100) = (12)/(100)` = 0.12

Now, `(1)/"P" - (1)/"A" = "i"/"C"`

∴ `(1)/(10,000) - (1)/(20,000) = (0.12)/"C"`

∴ `(2 - 1)/(20,000) = (012)/"C"`

∴ `(1)/(20,000) = (0.12)/"C"`

∴ C = (0.12)(20,000)
∴ C = 2,400
∴ The amount of each annuity payment is ₹2,400.

Concept: Annuity
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APPEARS IN

Balbharati Mathematics and Statistics 2 (Commerce) 12th Standard HSC Maharashtra State Board
Chapter 2 Insurance and Annuity
Exercise 2.2 | Q 1.14 | Page 28
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