Find the future value of an annuity of rs .3000 for 5 year at 8 parsantege?

Question

Answer

Calculating the Future Value of an Annuity

An annuity is a series of equal payments made at regular intervals over a specific period of time. The future value of an annuity is the total value of the payments at the end of the period. To calculate the future value of an annuity, you need to know the amount of each payment, the interest rate, and the number of payments.

Formula for Calculating Future Value of Annuity

The formula for calculating the future value of an annuity is:

FV = Future Value of Annuity

PMT = Payment per period

i = Interest rate per period

n = Number of periods

Calculating the Future Value of an Annuity of Rs. 3000 for 5 Years at 8%

Using the formula above, we can calculate the future value of an annuity of Rs. 3000 for 5 years at 8% as follows:

PMT = Rs. 3000

i = 8% per year (or 0.08 per year)

n = 5 years

Using the formula above, we have:

Therefore, the future value of an annuity of Rs. 3000 for 5 years at 8% is Rs. 17,942.76.

Conclusion

Calculating the future value of an annuity is important for financial planning. It helps you understand how much a series of regular payments will be worth in the future. By using the formula above, you can calculate the future value of any annuity, given the payment, interest rate, and number of periods.

Answer

3000×100÷8=1200
5 year 8 % = 1200

Answer

17600

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