Question

15. Appu retires at 60 years receiving
receiving a pension of 14,400 a year paid in half-yearly installments
for rest of his life after reckoning his
koning his life expectation to be 13 years and that interest at 4%
p.a. is payable half-yearly. What single sum is equivalent to his pensions
(a) 1,45,000
(b) 1,44,900
(c) 1,44,800
(d) 1,44,700
​

Answer 1

Answer:

14490

Step-by-step explanation:

the answer is approximately 144900

Answer 2

single sum equivalent to his pensions = 144871

Step-by-step explanation:

Here pension of 14400 a year

= Rs 7200 every six month

Rate of interest = 2 % Per six months

13 Years = 26  6 Months

Let say Single Sum = S

then

7200  =  S ( 2/100) (1  + 2/100)²⁶/( (1  + 2/100)²⁶ - 1)

=> 360000 = S (1  + 2/100)²⁶/( (1  + 2/100)²⁶ - 1)

=> S  = 1,44,871

single sum is equivalent to his pensions = 144871