Advertisements
Advertisements
Question
The present value of the perpetual annuity of ₹ 2000 paid monthly at 10% compound interest is ___________.
Options
₹ 2,40,000
₹ 6,00,000
₹ 20,40,000
₹ 2,00,400
Advertisements
Solution
The present value of the perpetual annuity of ₹ 2000 paid monthly at 10% compound interest is ₹ 2,40,000.
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]
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]
Find the amount at the end of 12 years of an annuity of ₹ 5,000 payable at the beginning of each year, if the money is compounded at 10% per annum. [(1.1)12 = 3.1384]
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
An annuity in which payments are made at the beginning of each payment period is called ___________.
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]
Calculate the amount of an ordinary annuity of ₹ 10,000 payable at the end of each half-year for 5 years at 10% per year compounded half-yearly. [(1.05)10 = 1.6289]
Find the amount of an ordinary annuity of ₹ 600 is made at the end of every quarter for 10 years at the rate of 4% per year compounded quarterly. [(1.01)40 = 1.4889]
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]
