Question

Find the amount of a sequence of annual payments of ₹6000 each the first being made the end of 6 years and the last at the end of 10 years if money is worth 5% effective.Find the amount of a sequence of annual payments of ₹6000 each the first being made the end of 6 years and the last at the end of 10 years if money is worth 5% effective.​

Answer 1

Answer:

We know that formula of present value is 

V=rA[(1+100R)m1−(1+100R)m+n1]

We have  annuity of 8 terms (n)

For 4 terms (m)⟹m=4⟹m+n=12

V=0.0625000[(1+1006)41−(1+1006)121]=Rs.122968.45