an account paying interest 6% per year compoundea
monthly. What is the future value of this annuity after
10th payment? Given that (1.005)10 = 1.0511
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Q.NO.63: Z invests Rs. 10000 every year starting from
today for next 10 years. Suppose interest rate is 8% per
annum compounded annually. Calculate future value of lif
the annuity. Given that (1 + 0.08)10 = 2.15892500.
Q.NO.65: Find the present value of Rs. 10000 to be
required after 5 years if the interest rate be 9%. Given
Answers
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If Rs 10000 every year invested for 10 years at 8% per annum compounded annualy then Annuity after 10 years Will be Rs 1,56,454.88
Step-by-step explanation:
Z invests Rs. 10000 every year starting from today for next 10 years.
interest rate is 8% per annum compounded annually
Amount after 10 years for 1 st installment = 10000 * (1 + 8/100)¹⁰
Amount after 10 years for 2nd installment = 10000 * (1 + 8/100)⁹
..
..
Amount after 10 years for 9th installment = 10000 * (1 + 8/100)²
Amount after 10 years for 10th installment = 10000 * (1 + 8/100)¹
Assuming completion of 10 years
Amount =
10000 * (1 + 8/100)¹ + 10000 * (1 + 8/100)² +.................. 10000 * (1 + 8/100)¹⁰
= 10000 (1 + 8/100)¹ ( (1 + 8/100)¹⁰ - 1)/( (1 + 8/100) - 1)
= 10000 ( 1.08) (2.15892500 - 1)/(0.08)
= 1,56,454.88
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