Question

How much would you have to pay now for a retirement annuity that would provide RS 3000 at the end of every three months at 5% compounded Quartely for the first ten years and 2500 at the end of each month at 6% compounded monthly for the following five years?​

Answer 1

Answer:

8302.99

Explanation:

$A_{1}=p(1+ \frac{r}{400})^{4n} \\\\=3000(\frac{81}{80} )^{40} \\\\=4930.86$

$A_{2} =p(1+\frac{r}{1200} )^{12n} \\\\=2500(1+\frac{6}{1200})^{60}\\ \\=2500(\frac{201}{200} )^{60} \\\\=3372.13$

A=A1+A2

 = 4930.86+3372.13

 =8302.99