Question

Suppose your mom decides to gift you rs 10000 every year starting from today for the next sixteen years. You deposit this amount in a bank as and when you recieve and get 8.5% per annum interest rate compounded annually. What is the present value of this money. Given that P[15, 0.085]= 8.304236

Answer 1

Answer:

rs 36887.21

Step-by-step explanation:

A=P(1+r/n)^(n)(t)

matured value=10000(1+0.085/1)^(1)(16)

matured value=10000(1.085)^(1)(16)

matured value=10000(3.688721024)

matured value=36887.21