A house is sold for Rs. 50,000 down and 10 semi annual payments of
Rs. 5000 each, the first due 3 years hence find the cash price of the
house, if money is worth 6% per annum, compounded semi-annually.
solve by deffered annuity method
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A house is sold for Rs. 50,000 down and 10 semi annual payments of
Rs. 5000 each, the first due 3 years hence find the cash price of the
house, if money is worth 6% per annum, compounded semi-annually.
solve by deffered annuity method
Answered by
0
Answer:
Final Answer.
Step-by-step explanation:
The given anuity is ordinary and is defered by 2.5 years and consisting of 10 semi-annual installments of Rs. 5000 each.
a=5000, n=10, m=2.5x2=5, i=3/100
The cash prize of the house is equal to the sum of Rs. 50,000 and the present value of the given defered anuity before the beginning of the deferment period.
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