Question

the present value of annuity of rs5000 per annum for 12 years at 4% p.a c.i. annually is

Answer 1

principal =5000.
rate =4 percent.
time =12 months =1yrs
a=p(1+r/100)n
a=5000(1+4/100)1
a=5000*(104/100)
a=5000*26/25=200*26=5200.
ci=a-p
ci=5200-5000=200answer

Answer 2

Given:

Principal,

P = 5000

Rate,

r = 4%

Time,

n = 12 months

Or,

  = 1 year

To find:

The CI = ?

Solution:

⇒ $A = P(1+\frac{r}{100} )n$

By substituting the values, we get

       $=5000(1+\frac{4}{100} )1$

       $=5000\times \frac{104}{100}$

       $=200\times 26$

       $=5200$

hence,

The CI will be:

= $A-P$

= $5200-5000$

= $200$

Thus, the correct answer is "200".