Question

I. 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

Step-by-step explanation:

$as \: a \: person \: receive \: 1000 \: every \: month \:$

$for \: one \: year \: total \: principle \: 1000 \times 12 = 12000$

$r = 12 \: percent \: pa \: and \: t \: is \: one \: yrs$

$si = 12000 + 12 \times 1 \div 100$

$total \: money \: received \: in \: present \: year$

$12000 + 1440 = 13440$

$for \: 20 \: yrs \: principle \: becomes$

$1000 \times 12 \times 20 = 240000$

$si = 240000 \times 12 \times 20 \div 100 = 576000$

$total \: amt \: received \: for \: 20 \: yrs$

$= 240000 + 576000 = 816000$