Question

Ques:- If interest rate is 10% per year, which one of the following annuities give maximum benefit and hence preferable?
(A).Annuity of $ 100 for 10 years (B).Annuity of $ 50 for 15 years (C).Annuity of $ 65 for 20 years (D).Annuity of $ 180 for 5 years
Please tell the correct option only with explanation .

Answer 1

Answer:

D

Explanation:

because km Tym me jyada int. mile ga dost

Answer 2

Answer:

(C).Annuity of $ 65 for 20 years

Explanation:

Total Principal Total Interest  Ending Balance

$ 100   $ 159.37   $ 259.37

$ 50   $ 158.86   $ 208.56

$ 65   $ 372.29   $ 437.29

$ 180   $ 109.89   $ 289.89