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Question
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]
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Solution
Here a = 3,200, n = 12, and i = `10/100` = 0.1
A = `"a"/"i"` [(1 + i)n – 1]
= `3200/0.1` [(1 + 0.1)12 – 1]
= 32000 [(1.1)12 – 1]
= 32000 [3.1384 – 1] ...........[∵ (1.1)12 = 3.1384]
= 32000 [2.1384]
= ₹ 68,428.8
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