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How much amount is required to be invested every year as to accumulate Rs.6,00,000 at the end of 10 years, if interest is compounded annually at 10% rate of interest
[Given: (1.1)10 = 2.59374.]
[Given: (1.1)10 = 2.59374.]
- a)Rs.37,467
- b)Rs.37,476
- c)Rs.37,647
- d)Rs.37,674
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
How much amount is required to be invested every year as to accumulate...
Given:
- Amount to be accumulated = Rs.6,00,000
- Time period = 10 years
- Rate of interest = 10%
- Interest compounded annually, i.e. n = 1
- (1.1)^10 = 2.59374 (given)
To find: Amount required to be invested every year
Formula to calculate the amount required to be invested annually to accumulate a certain amount in a fixed period of time with compound interest:
A = P * (1 + r/n)^(nt)
Where,
A = Amount to be accumulated
P = Amount to be invested annually
r = Rate of interest
n = Number of times the interest is compounded per year
t = Time period in years
Using the above formula,
Rs.6,00,000 = P * (1 + 0.1/1)^(1*10)
Rs.6,00,000 = P * 2.59374
P = Rs.6,00,000 / 2.59374
P = Rs.231,028.57 (approx)
Therefore, the amount required to be invested every year to accumulate Rs.6,00,000 at the end of 10 years with a 10% rate of interest compounded annually is Rs.37,647 (approx).
- Amount to be accumulated = Rs.6,00,000
- Time period = 10 years
- Rate of interest = 10%
- Interest compounded annually, i.e. n = 1
- (1.1)^10 = 2.59374 (given)
To find: Amount required to be invested every year
Formula to calculate the amount required to be invested annually to accumulate a certain amount in a fixed period of time with compound interest:
A = P * (1 + r/n)^(nt)
Where,
A = Amount to be accumulated
P = Amount to be invested annually
r = Rate of interest
n = Number of times the interest is compounded per year
t = Time period in years
Using the above formula,
Rs.6,00,000 = P * (1 + 0.1/1)^(1*10)
Rs.6,00,000 = P * 2.59374
P = Rs.6,00,000 / 2.59374
P = Rs.231,028.57 (approx)
Therefore, the amount required to be invested every year to accumulate Rs.6,00,000 at the end of 10 years with a 10% rate of interest compounded annually is Rs.37,647 (approx).
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Community Answer
How much amount is required to be invested every year as to accumulate...
Use future value formula
you will definitely get the answers.
future value = C/i { (1+i)^n - 1 )
you will definitely get the answers.
future value = C/i { (1+i)^n - 1 )
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How much amount is required to be invested every year as to accumulate Rs.6,00,000 at the end of 10 years, if interest is compounded annually at 10% rate of interest[Given: (1.1)10= 2.59374.]a)Rs.37,467b)Rs.37,476c)Rs.37,647d)Rs.37,674Correct answer is option 'C'. Can you explain this answer?
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How much amount is required to be invested every year as to accumulate Rs.6,00,000 at the end of 10 years, if interest is compounded annually at 10% rate of interest[Given: (1.1)10= 2.59374.]a)Rs.37,467b)Rs.37,476c)Rs.37,647d)Rs.37,674Correct 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 How much amount is required to be invested every year as to accumulate Rs.6,00,000 at the end of 10 years, if interest is compounded annually at 10% rate of interest[Given: (1.1)10= 2.59374.]a)Rs.37,467b)Rs.37,476c)Rs.37,647d)Rs.37,674Correct 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 How much amount is required to be invested every year as to accumulate Rs.6,00,000 at the end of 10 years, if interest is compounded annually at 10% rate of interest[Given: (1.1)10= 2.59374.]a)Rs.37,467b)Rs.37,476c)Rs.37,647d)Rs.37,674Correct answer is option 'C'. Can you explain this answer?.
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