Maharashtra State BoardHSC Commerce 12th Board Exam
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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] - Mathematics and Statistics

Sum

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]

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Solution

Given, C = ₹10,000
Amount is invested every quarter for one year.
∴ n = 4
Rate of interest is 16% p.a
∴ r = `(16)/(4)` = 4%

i = `"r"/(100) = (4)/(100)` = 0.04

Since, A = `"C"/"i"[(1 + "i")^"n" - 1]`

= `(10,000)/(0.04)[(1 + 0.04)^4 - 1]`

= 2,50,000[(1.04)4 – 1]
= 2,50,000[1.1699 – 1]
= 2,50,000[0.1699 – 1]
= 42, 475
∴ Amount accumulated value after 1 years is ₹42,475.

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 1.04 | Page 27
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