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If the amount of an annuity after 25 years at 5% p.a. C.I is Rs. 50000 the annuity will be
- a)Rs. 1406.90
- b)Rs. 1046.90
- c)Rs. 1146.90
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
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If the amount of an annuity after 25 years at 5% p.a. C.I is Rs. 50000...
Calculation of Annuity
An annuity is a series of payments made at equal intervals. The formula to calculate the present value of an annuity is:
PV = (PMT × (1 - (1 + r)^-n)) / r
Where:
- PV is the present value of the annuity
- PMT is the payment made at each interval
- r is the interest rate per interval
- n is the total number of intervals
In this case, we know that the present value of the annuity after 25 years at 5% p.a. C.I is Rs. 50000. We need to find the payment made at each interval, which is the annuity.
Using the above formula and substituting the known values, we get:
50000 = (PMT × (1 - (1 + 0.05/1)^-25)) / (0.05/1)
Solving for PMT, we get:
PMT = 1046.90
Therefore, the annuity is Rs. 1046.90. Option B is correct.
An annuity is a series of payments made at equal intervals. The formula to calculate the present value of an annuity is:
PV = (PMT × (1 - (1 + r)^-n)) / r
Where:
- PV is the present value of the annuity
- PMT is the payment made at each interval
- r is the interest rate per interval
- n is the total number of intervals
In this case, we know that the present value of the annuity after 25 years at 5% p.a. C.I is Rs. 50000. We need to find the payment made at each interval, which is the annuity.
Using the above formula and substituting the known values, we get:
50000 = (PMT × (1 - (1 + 0.05/1)^-25)) / (0.05/1)
Solving for PMT, we get:
PMT = 1046.90
Therefore, the annuity is Rs. 1046.90. Option B is correct.
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Community Answer
If the amount of an annuity after 25 years at 5% p.a. C.I is Rs. 50000...
Fv of annuity = a/i( 1+i)^n - 1
50000 = a/0.5( 1.05)^25 -1
a= 1046.90
option b
hope this helps
50000 = a/0.5( 1.05)^25 -1
a= 1046.90
option b
hope this helps
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If the amount of an annuity after 25 years at 5% p.a. C.I is Rs. 50000 the annuity will bea)Rs. 1406.90b)Rs. 1046.90c)Rs. 1146.90d)None of theseCorrect answer is option 'B'. Can you explain this answer?
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