Question

Thomas received 50,000 php from his parents during his 33rd birthday. He invested his money in a scheme wherein he will receive 10 equal payments at the end of every year starting 30 years from now, with an interest rate of 3% compounded annually. How much is the regular pay-out Thomas will receive annually from this investment?
A. 12,586.15 PHP
B. 13,813.07 PHP
C. 14,361.53 PHP
D. 10,500.00 php

Answer 1

Answer:

Thomas should know about this...

Answer 2

Thomas will receive  regular pay-out  annually from this investment of 12586.15 PHP option A is correct.

Step-by-step explanation:

Given:

Rs.50,000 PHP  received by Thomas from his parents,

Starting 30 years from now ,Thomas will get 10 equal payments at the end of every year.

interest rate of 3% compounded annually

To Find:

Thomas will receive  regular pay-out  annually from this investment

Formula Used:

$Z=M(1+\frac{Y}{100 K} )^{KS}$          --------------------- formula no. 01

Z =represents the new principal sum or the total amount of money after compounding period

M= represents the original amount or initial amount

Y =is the annual interest rate

K=represents the compounding frequency or the number of times interest is compounded in a  year

S = represents the number of years

Solution:

As given- 50,000 PHP  received by Thomas from his parents.

Starting 30 years from now ,Thomas will get 10 equal payments at the end of every year.

interest rate of 3% compounded annually

M=50000 PHP    ,S=30 years     ,   Y= 3%     K=1

Putting values of M,S,Y,K  and Z in equation no.01

$Z=M(1+\frac{Y}{100 K} )^{KS}$

$Z=50000(1+\frac{3}{100 X1} )^{(1X30)}$

$Z=50000(1+.03 )^{30}$

$Z=50000(1.03 )^{30}$

$Z=125860.15$

Total Z amount Thomas will get 10 equal payments at the end of every year. This means  regular pay-out  annually = 12586.15

Thus, Thomas will receive  regular pay-out  annually from this investment of 12586.15 PHP option A is correct.