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An annuity of equal payments at the beginning of every six months for 8 years is to be calculated for ₹ 20,000. If the interest rate is 18% p.a. compounded half yearly. How much is each payment ? [Given : (1.09) 17 = 4.323] (a) 551.89 (b) 552.89 (c) 556.75 (d) none of these?
Most Upvoted Answer
An annuity of equal payments at the beginning of every six months for ...
Given:
Annuity amount = ₹20,000
Number of payments = 8*2 = 16
Interest rate = 18% p.a. compounded half yearly

To find:
Amount of each payment

Solution:
Let the amount of each payment be X.

Using the formula for the present value of an annuity, we have:

₹20,000 = X * ((1 - (1 + 0.18/2)^-16) / (0.18/2))

Solving for X, we get:

X = ₹551.89

Therefore, the amount of each payment is ₹551.89.

Answer: (a) 551.89.
Community Answer
An annuity of equal payments at the beginning of every six months for ...
None of these
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An annuity of equal payments at the beginning of every six months for 8 years is to be calculated for ₹ 20,000. If the interest rate is 18% p.a. compounded half yearly. How much is each payment ? [Given : (1.09) 17 = 4.323] (a) 551.89 (b) 552.89 (c) 556.75 (d) none of these?
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An annuity of equal payments at the beginning of every six months for 8 years is to be calculated for ₹ 20,000. If the interest rate is 18% p.a. compounded half yearly. How much is each payment ? [Given : (1.09) 17 = 4.323] (a) 551.89 (b) 552.89 (c) 556.75 (d) none of these? 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 An annuity of equal payments at the beginning of every six months for 8 years is to be calculated for ₹ 20,000. If the interest rate is 18% p.a. compounded half yearly. How much is each payment ? [Given : (1.09) 17 = 4.323] (a) 551.89 (b) 552.89 (c) 556.75 (d) none of these? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An annuity of equal payments at the beginning of every six months for 8 years is to be calculated for ₹ 20,000. If the interest rate is 18% p.a. compounded half yearly. How much is each payment ? [Given : (1.09) 17 = 4.323] (a) 551.89 (b) 552.89 (c) 556.75 (d) none of these?.
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