Question

Find the present and future value of $1000 received every month end for 20 years if the interest rate is J12 = 12% p.a.

Answer 1

Answer:

Step-by-step explanation:

1

as a person receive 1000 every month

for one year total principal 1000 * 12 = 12000

r= 12%p.a and t is 1yr

si = 12000*12*1/100 = 1440

total money received in present year 12000 + 1440 = 13440

for 20 yrs principal becomes 1000*12*20= 240000

si = 240000*12*20/100= 576000

total amt received for 20 yrs = 240000+ 576000=816000

2

present value of principal as money receive 10000 for 10 yrs = 10000*10 = 100000

si = 100000*10*12/100= 120000

amt = 220000

after 20yrs another payment received value of principal is 10000*20 = 200000

si 200000*12*20/100= 480000

amt = 200000+480000 =680000

I hope this will help you❤️❤️