Question

Beginning from the end of 6 years from now a person has right of 350 annum for 8 years and 250 per annum for next 6 years. What is the present of his rights assuming interest rate of 5% per annum?​

Answer 1

Answer:

Step-by-step explanation:

SIMPLE ONE-TIME INTEREST

I

=

P

0

r

A

=

P

0

+

I

=

P

0

+

P

0

r

=

P

0

(

1

+

r

)

I is the interest

A is the end amount: principal plus interest

P

0

is the principal (starting amount)

r is the interest rate (in decimal form. Example: 5% = 0.05)