Question

what is the present value of annuity ₹3000 for 5yrs at 12% pa?​

Answer 1

Step-by-step explanation:

The present value of an annuity is Rs.32218.63.

Step-by-step explanation:

Given: Rs.3000 for 15 years at 4.5% per annum Cl.

To find : The present value of an annuity

?

Solution :

The formula to find the present value of annuity is given by,

1-(1+r) P = PMT x

P = the present value of annuity

PMT =Rs.3000 the amount in each annuity payment

R=4.5% 0.045 the interest or discount rate

n=15 the number of payments

Substitute the value in the formula,

P = 3000 × (1+0.045) 15 0.045

P = 3000 × (1.045)15 0.045

P = 3000 x 1-0.516 0.045

P 3000 × 0.4832 0.045

P - 3000 x 10.739

P = 32218.63

Therefore, The present value of an annuity is Rs.32218.63.