The present value of an annuity of rs.80 a years for 20 years at 5% p.a is
Answers
Answered by
41
Answer:
Step-by-step explanation:
A = ₹ 80.
I = 5%. = 5/100 = 0.05
n = 20 years.
P = ?
Present value of annuity :-
P = A [1-(1+I)^-n] / i
P = 80 [1-(1+0.05)^-20] / 0.05
P =80[1-0.37688948287] / 0.05
P = 80 ( 0.62311051713) / 0.05
P =80 × 12.4 622103420
= 996.97
=997 Ans.
Answered by
3
Given:
present value of an annuity = 80
Time = 20years
Rate = 5%
Explanation:
A = ₹ 80.
I = 5%.
= 5/100
= 0.05
n = 20 years.
P = ?
Present value of annuity will be:
P = A [1-(1+I)⁻ⁿ] / i
P = 80 [1-(1+0.05)⁻²⁰] / 0.05
P =80[1-0.37688948287] / 0.05
P = 80[0.62311051713] / 0.05
P =80 × 12.4 622103420
= 996.97
Answer = 996.97
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