Question

In how many years will an annuity of Rs 200 amount to Rs 5000 at 5% compound interest?​

Answer 1

Answer:

A=Rs. 200

n=10

i=6% p.a. =6/12% per month =0.005

Future value of annuity after 10 months is given by

A(n, i)=A[

i

(1+i)

n

−1

]

A(10,0.005)=200[

0.005

(1+0.005)

10

−1

]

=Rs. 2,044.