Question

What is the present value of an annuity of Rs. 2000 for 5 years at 12% p.a?*

Answer 1

Step-by-step explanation:

2000× 5/12 = 2.4 × 2000 = 4800.0

Answer 2

Answer:

The total amount after five years is 3200

Step-by-step explanation:

The principle amount is given by

P = Rs. 2000

The time T = 5 years

The rate of interest per annum is given by

R = 12%

$S.I = \frac{PTR}{100}$

     $= \frac{(2000)(5)(12)}{100}$

S. I = 1200

The total amount = P + S. I

                              = 2000 + 1200

                              = 3200

Therefore the present value of an annuity of Rs. 2000 is 3200