Question

Raja aged 40 years wishes his wife Rani to have Rs. 40 lakhs at his death. if his expectation
of life is another 30 years and he starts making equal annual investments commencing now at
3% compound interest p.a. how much should he invest annually?​

Answer 1

Rs. 84077 is the amount he should invest annually

Step-by-step explanation:

Given that,

future value of annuity regular = 40lakhs.

n = 30 years

r = 3%

Formulae:

A = P$(1 + \frac{r}{n}) ^{nt}$

40,00,000 = a( (1+0.03)^30 -1 /0.03 )

a =  40,00,000/47.5754

Therefore,

a = Rs. 84077

Learn more: compound interest

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