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Question
The intervening time between payment of two successive installments is called as ______
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Solution
payment period
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Choose the correct alternative :
Amount of money today which is equal to series of payments in future is called
In an ordinary annuity, payments or receipts occur at ______.
Choose the correct alternative :
Rental payment for an apartment is an example of
Fill in the blank :
If payments of an annuity fall due at the beginning of every period, the series is called annuity __________.
State whether the following is True or False:
Annuity certain begins on a fixed date and ends when an event happens.
State whether the following is True or False :
Annuity contingent begins and ends on certain fixed dates.
State whether the following is True or False :
The present value of an annuity is the sum of the present value of all installments.
State whether the following is True or False :
The future value of an annuity is the accumulated values of all installments.
Solve the following :
Find the amount a company should set aside at the end of every year if it wants to buy a machine expected to cost ₹1,00,000 at the end of 4 years and interest rate is 5% p. a. compounded annually. [(1.05)4 = 1.21550625]
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Find the least number of years for which an annuity of ₹3,000 per annum must run in order that its amount exceeds ₹60,000 at 10% compounded annually. [(1.1)11 = 2.8531, (1.1)12 = 3.1384]
Solve the following :
Find the future value after 2 years if an amount of ₹12,000 is invested at the end of every half year at 12% p. a. compounded half yearly. [(1.06)4 = 1.2625]
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The present value of an immediate annuity of ₹ 10,000 paid each quarter for four quarters at 16% p.a. compounded quarterly is ______
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A sinking fund is a fund established by financial organization
An annuity in which each payment is made at the end of period is called ______
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[Given (1.1)4 = 1.4641]
