Question

find the value of an annuity of rs 500 payable at the end of every half year for 10 year at 10%p.a compound interest?
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Answer 1

Step-by-step explanation:

P= 500, R= 10% compounded half yearly

n= 10 years

A= P[1+(r/2)/100]^2n

A=500[1+(10/2)/100]^2×10

A=500[1+5/100]^20

=500[1+1/20]^20

=500×(21/20)^20

=500×(1.05)^20