Advertisements
Advertisements
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]
Advertisements
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
APPEARS IN
RELATED QUESTIONS
If the payment of ₹ 2,000 is made at the end of every quarter for 10 years at the rate of 8% per year, then find the amount of annuity. [(1.02)40 = 2.2080]
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]
What is the amount of perpetual annuity of ₹ 50 at 5% compound interest per year?
₹ 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 annuity of ₹ 2000 payable at the end of each year for 4 years of money is worth 10% compounded annually. [(1.1)4 = 1.4641]
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 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]
Machine A costs ₹ 15,000 and machine B costs ₹ 20,000. The annual income from A and B are ₹ 4,000 and ₹ 7,000 respectively. Machine A has a life of 4 years and B has a life of 7 years. Find which machine may be purchased. (Assume discount rate 8% p.a) [(1.08)–4 = 0.7350, (1.08)–7 = 0.5835]
