Question

If Amit has been regularly investing Rs.10,000 at the beginning of every year for the past 10 years, into an investment earning 10% rate of return, what is the value of the investment now?

Answer 1

Explanation:

EXAMPLE

Suppose you intend to invest Rs 1,00,000 for 10 years at an interest rate of 10 per cent and the compounding is annual.

The total amount you will receive after 10 years will be

= 1,00,000(1+0.1) ^10 = 2,59,374.25

This shows that the interest earned over 10 years is Rs 1,59,374.25