Question

A man requires 20,00,000 to purchase a house after 5 years. He has an
opportunity to invest funds in an account which can earn 6% per annum
compounded quarterly. Find out how much he needs to deposit every quarter so
as to have the required amount.​

Answer 1

Answer:

Step-by-step explanation:

A man requires 20,00,000

Amount after 5 years included interest = 20,00,000

Time = 5 years

Rate = 6 % p.a

invest quarterly = 6/4 = 1.5 %

A = p( 1+ r/100) n

20,00,000 = P ( 1 + 1.5 /100 )²⁰

20,00,000 = p ( 100 + 1.5 /100) ²⁰

20,00,000 = p ( 101.5 /100)²⁰

20,00,000 = P (   1.015) ²⁰

20,00,000 / 1.33822 = P

1494768 = P

In 5 years 1494768 should invest

In 1 year  1494768 / 5 = 298953

For quaterly = 74738

He needs to deposit every quarter so  as to have the required amount. is 74738