Question

yashu needs rs236027.904 to purchase a car after year. how much money should he deposit in the bank to get required sum if rate of interest is 12 percent p.a.,compounded annually ​

Answer 1

Answer:

This sum is the sum of a geometric progression of n terms, with ratio 1+i/12 and first term m/(1+i/12). So

P=∑k=1nm(1+i12)k=m1+i12(11+i/12)n−111+i/12−1=m(1+i12)n−1i12(1+i12)n.(1)

The ratio P/m is called the series present-worth factor (uniform series)1.

For P=19500, m=400 and n=5×12=60 we have:

19500=400(1+i12)60−1i12(1+i12)60.(2)

I solved numerically (2) for i using SWP and got

i≈0.084923≈8.49%.

THIS PROCESS. MAY. HELP YOU