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A person desires to create a fund to be invested at 10% CI per annum to provide prize of 300 every year. Using V = a/l find V and V will be?
Most Upvoted Answer
A person desires to create a fund to be invested at 10% CI per annum t...
Solution:
Given,
Annual prize amount (a) = 300
Rate of interest (r) = 10%
Using the formula V = a/l, we need to find V and l.
Finding l:
Let us assume that the fund is created for 'x' years.
Then, the future value of the fund (FV) after 'x' years can be given by the formula:
FV = P(1+r/100)^n, where P is the principal amount.
Since we want to provide a prize of 300 every year, the future value of the fund after 'x' years should be equal to 300 multiplied by the number of years 'x'.
So, we can write:
300x = P(1+r/100)^x
Simplifying this equation, we get:
l = (1+r/100)^x
where l is the accumulation factor.
Finding V:
Using the formula V = a/l, we can find the present value of the fund as:
V = a/(1+r/100)^x
Therefore, we have:
l = (1+r/100)^x
V = a/(1+r/100)^x
Final Answer:
The present value of the fund (V) is a/(1+r/100)^x, where a = 300 and r = 10%. The accumulation factor (l) is (1+r/100)^x.
Note: The value of 'x' is not given in the question. It needs to be assumed or calculated based on other information.
Given,
Annual prize amount (a) = 300
Rate of interest (r) = 10%
Using the formula V = a/l, we need to find V and l.
Finding l:
Let us assume that the fund is created for 'x' years.
Then, the future value of the fund (FV) after 'x' years can be given by the formula:
FV = P(1+r/100)^n, where P is the principal amount.
Since we want to provide a prize of 300 every year, the future value of the fund after 'x' years should be equal to 300 multiplied by the number of years 'x'.
So, we can write:
300x = P(1+r/100)^x
Simplifying this equation, we get:
l = (1+r/100)^x
where l is the accumulation factor.
Finding V:
Using the formula V = a/l, we can find the present value of the fund as:
V = a/(1+r/100)^x
Therefore, we have:
l = (1+r/100)^x
V = a/(1+r/100)^x
Final Answer:
The present value of the fund (V) is a/(1+r/100)^x, where a = 300 and r = 10%. The accumulation factor (l) is (1+r/100)^x.
Note: The value of 'x' is not given in the question. It needs to be assumed or calculated based on other information.
Community Answer
A person desires to create a fund to be invested at 10% CI per annum t...
V=a/I
= 300/0.1=3000 answer
0.1= 10/100
= 300/0.1=3000 answer
0.1= 10/100
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A person desires to create a fund to be invested at 10% CI per annum to provide prize of 300 every year. Using V = a/l find V and V will be?
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A person desires to create a fund to be invested at 10% CI per annum to provide prize of 300 every year. Using V = a/l find V and V will be? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A person desires to create a fund to be invested at 10% CI per annum to provide prize of 300 every year. Using V = a/l find V and V will be? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person desires to create a fund to be invested at 10% CI per annum to provide prize of 300 every year. Using V = a/l find V and V will be?.
A person desires to create a fund to be invested at 10% CI per annum to provide prize of 300 every year. Using V = a/l find V and V will be? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A person desires to create a fund to be invested at 10% CI per annum to provide prize of 300 every year. Using V = a/l find V and V will be? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person desires to create a fund to be invested at 10% CI per annum to provide prize of 300 every year. Using V = a/l find V and V will be?.
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