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Kapil plans to deposit a sum of Rs.750 in a savings accounts at the end of this month and the same amount at the end of each following months.To what sum will the investment grow at the end of 5 years ,if the rate interest in 5%per annum compounded monthly.?
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Kapil plans to deposit a sum of Rs.750 in a savings accounts at the en...
Calculation of Compound Interest



  • Principal amount (P) = Rs. 750

  • Rate of interest (R) = 5% per annum compounded monthly

  • Time period (T) = 5 years = 60 months



Calculation of Monthly Installment



  • Monthly installment (M) = Rs. 750



Calculation of Future Value



  • Using the formula FV = P(1+R/100)^n, where FV is the future value, P is the principal amount, R is the rate of interest and n is the time period in months

  • Calculating the future value for each monthly installment and adding them up

  • FV = 750(1+0.05/12)^60 + 750(1+0.05/12)^59 + ... + 750(1+0.05/12)^1

  • FV = 750(1.004167)^60 + 750(1.004167)^59 + ... + 750(1.004167)^1

  • FV = 750(1.004167^60 + 1.004167^59 + ... + 1.004167^1)

  • FV = 750(1.276)

  • FV = Rs. 957



Conclusion


The investment will grow to Rs. 957 at the end of 5 years.
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Kapil plans to deposit a sum of Rs.750 in a savings accounts at the end of this month and the same amount at the end of each following months.To what sum will the investment grow at the end of 5 years ,if the rate interest in 5%per annum compounded monthly.?
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Kapil plans to deposit a sum of Rs.750 in a savings accounts at the end of this month and the same amount at the end of each following months.To what sum will the investment grow at the end of 5 years ,if the rate interest in 5%per annum compounded monthly.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Kapil plans to deposit a sum of Rs.750 in a savings accounts at the end of this month and the same amount at the end of each following months.To what sum will the investment grow at the end of 5 years ,if the rate interest in 5%per annum compounded monthly.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Kapil plans to deposit a sum of Rs.750 in a savings accounts at the end of this month and the same amount at the end of each following months.To what sum will the investment grow at the end of 5 years ,if the rate interest in 5%per annum compounded monthly.?.
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