Question

The present value of an immediate annuity for 3 years at 10% p.a. compounded annually is Rs. 40,000. Its accumulated future value after 3 years would be Rs. _________. 


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Answer 1

Answer:

53,240 and 13,240

Step-by-step explanation:

Principal = Rs 40,000

Rate= 10

Time = 3 yrs

Amount. = P(1+r÷100)n

= 40,000(1+10÷100)3

= 40,000(1+10÷100)3

= 40,000(10+1÷10)3

= 40,000×11÷10×11÷10×11÷10

= 40×11×11×11

= 53,240 Answer

compound intrest = Amount - Principal

= 53,240 -40,00 0

= 13,240 Answer