Question

The amount of an annuity certain of 150 for 12 years at 3.5% p.a C.I is (a) 2,190.28 (b) 1,290.28 (c) 2,180.28 (d) none of these​

Answer 1

Answer:

( a ) 2190.285

Explanation:

Principle = p = 150

Time = 12 yrs

Rate of interest = 3.5%

$FV = P[\frac{(1+i)^n-1}{i} ]$

$FV = 150[\frac{(1+0.035)^{12}-1}{0.035} ]$

$FV = 150[\frac{(1.035)^{12}-1}{0.035} ]$

$FV = 150[\frac{0.511067}{0.035}]$

$FV = 150*14.6019$

$FV = 2190.285$

Hence , The amount of an annuity certain of 150 for 12 years at 3.5% p.a. C.I is 2190.285