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A person desires to create a fund to be invested at 10% CI p. a to provide for a prize of ₹300 every year. Using v=a/i find v and v will be?
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A person desires to create a fund to be invested at 10% CI p. a to pro...
Calculation of v using v=a/i:
To find the value of v, we need to use the formula v=a/i where v is the present value, a is the annuity payment, and i is the interest rate per period.
Given,
Annuity payment (a) = ₹300
Interest rate (i) = 10% p.a.
Therefore, we can calculate the value of v as follows:
v = a/i
v = ₹300/0.10
v = ₹3,000
Thus, the present value (v) of the fund required to provide for a prize of ₹300 every year is ₹3,000.
Explanation:
The formula v=a/i is used to calculate the present value of an annuity, which is a series of equal payments made at regular intervals. In this case, the annuity payment is ₹300 per year, and the interest rate is 10% per year. The present value of the annuity is the amount of money that would need to be invested today to provide for the prize of ₹300 every year.
By using the formula v=a/i, we can calculate the present value of the fund required to provide for the prize of ₹300 every year. The present value tells us how much money we need to invest today to achieve our goal of providing a prize of ₹300 every year. In this case, the present value is ₹3,000, which means that we need to invest ₹3,000 today to provide for the prize of ₹300 every year at an interest rate of 10% per year.
To find the value of v, we need to use the formula v=a/i where v is the present value, a is the annuity payment, and i is the interest rate per period.
Given,
Annuity payment (a) = ₹300
Interest rate (i) = 10% p.a.
Therefore, we can calculate the value of v as follows:
v = a/i
v = ₹300/0.10
v = ₹3,000
Thus, the present value (v) of the fund required to provide for a prize of ₹300 every year is ₹3,000.
Explanation:
The formula v=a/i is used to calculate the present value of an annuity, which is a series of equal payments made at regular intervals. In this case, the annuity payment is ₹300 per year, and the interest rate is 10% per year. The present value of the annuity is the amount of money that would need to be invested today to provide for the prize of ₹300 every year.
By using the formula v=a/i, we can calculate the present value of the fund required to provide for the prize of ₹300 every year. The present value tells us how much money we need to invest today to achieve our goal of providing a prize of ₹300 every year. In this case, the present value is ₹3,000, which means that we need to invest ₹3,000 today to provide for the prize of ₹300 every year at an interest rate of 10% per year.
Community Answer
A person desires to create a fund to be invested at 10% CI p. a to pro...
300/10%=3000
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A person desires to create a fund to be invested at 10% CI p. a to provide for a prize of ₹300 every year. Using v=a/i find v and v will be?
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A person desires to create a fund to be invested at 10% CI p. a to provide for a prize of ₹300 every year. Using v=a/i 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 p. a to provide for a prize of ₹300 every year. Using v=a/i 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 p. a to provide for a prize of ₹300 every year. Using v=a/i find v and v will be?.
A person desires to create a fund to be invested at 10% CI p. a to provide for a prize of ₹300 every year. Using v=a/i 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 p. a to provide for a prize of ₹300 every year. Using v=a/i 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 p. a to provide for a prize of ₹300 every year. Using v=a/i find v and v will be?.
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