Question

the present value of an annuity of rs 3000 for 15 years at 4.5% per annum CI is

Answer 1

Answer:

The present value of an annuity is Rs.32218.63.

Step-by-step explanation:

Given : Rs.3000 for 15 years at 4.5% per annum CI.

To find : The present value of an annuity ?

Solution :

The formula to find the present value of annuity is given by,

$P = PMT\times \frac{1-\frac{1}{(1+r)^{n}}}{r}$

P = the present value of annuity

PMT =Rs.3000 the amount in each annuity payment

R=4.5%=0.045 the interest or discount rate

n=15 the number of payments

Substitute the value in the formula,

$P = 3000\times \frac{1-\frac{1}{(1+0.045)^{15}}}{0.045}$

$P = 3000\times \frac{1-\frac{1}{(1.045)^{15}}}{0.045}$

$P = 3000\times \frac{1-0.516}{0.045}$

$P = 3000\times \frac{0.4832}{0.045}$

$P = 3000\times 10.739$

$P = 32218.63$

Therefore, The present value of an annuity is Rs.32218.63.

Answer 2

Answer:

Hey, u can understand from this

Step-by-step explanation: