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Rs. 200 invested at the end of each month in an account paying interest 6% per year compounded monthly. What is the future value of this annuity after 10 th paym ent? [Given that (1.005) 10 = 1.0511]
  • a)
    Rs. 2045          
  • b)
    Rs.5055            
  • c)
    Rs.2044    
  • d)
    Rs.2065
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Rs. 200 invested at the end of each month in an account paying interes...
To solve this problem, we can use the formula for the future value of an ordinary annuity:

FV = P * [(1 + r)^n - 1] / r

Where:
FV = Future value of the annuity
P = Amount invested at the end of each period
r = Interest rate per period
n = Number of periods

In this case, P = Rs. 200, r = 6% per year compounded monthly (or 0.06/12 = 0.005 per month), and n = 10 months.

Now, let's plug in the values into the formula:

FV = 200 * [(1 + 0.005)^10 - 1] / 0.005

Calculating the exponent:

(1 + 0.005)^10 = 1.0511

Substituting this back into the formula:

FV = 200 * (1.0511 - 1) / 0.005
= 200 * 0.0511 / 0.005
= 2044

Therefore, the future value of this annuity after 10 payments is Rs. 2044.

The correct answer is option 'C'.
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Rs. 200 invested at the end of each month in an account paying interes...
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Rs. 200 invested at the end of each month in an account paying interest 6% per year compounded monthly. What is the future value of this annuity after 10 th paym ent? [Given that (1.005) 10 = 1.0511]a)Rs. 2045 b)Rs.5055 c)Rs.2044 d)Rs.2065Correct answer is option 'C'. Can you explain this answer?
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Rs. 200 invested at the end of each month in an account paying interest 6% per year compounded monthly. What is the future value of this annuity after 10 th paym ent? [Given that (1.005) 10 = 1.0511]a)Rs. 2045 b)Rs.5055 c)Rs.2044 d)Rs.2065Correct answer is option 'C'. Can you explain this answer? 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 Rs. 200 invested at the end of each month in an account paying interest 6% per year compounded monthly. What is the future value of this annuity after 10 th paym ent? [Given that (1.005) 10 = 1.0511]a)Rs. 2045 b)Rs.5055 c)Rs.2044 d)Rs.2065Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rs. 200 invested at the end of each month in an account paying interest 6% per year compounded monthly. What is the future value of this annuity after 10 th paym ent? [Given that (1.005) 10 = 1.0511]a)Rs. 2045 b)Rs.5055 c)Rs.2044 d)Rs.2065Correct answer is option 'C'. Can you explain this answer?.
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