Advertisements
Advertisements
Question
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]
Advertisements
Solution
Given a = ₹ 2000, i = `6/12%` = 0.5% = 0.005, n = 5 × 12 = 60
P = `"a"/"i" [(1 + "i")^"n" - 1]`
= `2000/0.005 [(1 + 0.005)^60 - 1]`
= `2000/0.005 [(1.005)^60 - 1]`
= 4,00,000 [1.3489 − 1]
= 4,00,000 (0.3489)
= ₹ 1,39,560
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]
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]
A person deposits ₹ 2,000 at the end of every month from his salary towards his contributory pension scheme. The same amount is credited by his employer also. If 8% rate of compound interest is paid, then find the maturity amount at end of 20 years of service. [(1.0067)240 = 4.9661]
Find the present value of an annuity of ₹ 900 payable at the end of 6th month for 6 years. The money compounded at 8% per annum. [(1.04)–12 = 0.6252]
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]
₹ 5000 is paid as perpetual annuity every year and the rate of C.I. 10%. Then present value P of immediate annuity is __________.
If ‘a’ is the annual payment, ‘n’ is the number of periods and ‘i’ is compound interest for ₹ 1 then future amount of the ordinary annuity is
The present value of the perpetual annuity of ₹ 2000 paid monthly at 10% compound interest 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]
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.
