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Rs.2000 is invested at the end of each month in account paying interest 6% per compounded monthly , What is the future value of this annuity after 10th payment ? (a) Rs. 51, 100 (b) Rs.52,200 (c) Rs.53, 300 (d) Rs.54, 500?
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Rs.2000 is invested at the end of each month in account paying interes...
Solution:
To solve the problem, we can use the formula for future value of an annuity:
FV = PMT * (((1 + r)^n - 1) / r)
Where,
PMT = Monthly payment = Rs. 2000
r = Interest rate per month = 6%/12 = 0.5%
n = Number of payments = 10
Substituting the values in the formula, we get:
FV = 2000 * (((1 + 0.005)^10 - 1) / 0.005) = Rs. 53,300
Therefore, the correct answer is (c) Rs. 53,300.
Explanation:
The problem involves an annuity where an equal amount of Rs.2000 is invested at the end of each month in an account paying interest 6% per compounded monthly. The future value of this annuity after 10th payment is to be found out.
To solve this problem, we can use the formula for future value of an annuity which takes into account the monthly payments, the interest rate, and the number of payments. Substituting the given values in the formula, we can calculate the future value of the annuity, which turns out to be Rs. 53,300.
To solve the problem, we can use the formula for future value of an annuity:
FV = PMT * (((1 + r)^n - 1) / r)
Where,
PMT = Monthly payment = Rs. 2000
r = Interest rate per month = 6%/12 = 0.5%
n = Number of payments = 10
Substituting the values in the formula, we get:
FV = 2000 * (((1 + 0.005)^10 - 1) / 0.005) = Rs. 53,300
Therefore, the correct answer is (c) Rs. 53,300.
Explanation:
The problem involves an annuity where an equal amount of Rs.2000 is invested at the end of each month in an account paying interest 6% per compounded monthly. The future value of this annuity after 10th payment is to be found out.
To solve this problem, we can use the formula for future value of an annuity which takes into account the monthly payments, the interest rate, and the number of payments. Substituting the given values in the formula, we can calculate the future value of the annuity, which turns out to be Rs. 53,300.
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Rs.2000 is invested at the end of each month in account paying interest 6% per compounded monthly , What is the future value of this annuity after 10th payment ? (a) Rs. 51, 100 (b) Rs.52,200 (c) Rs.53, 300 (d) Rs.54, 500?
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Rs.2000 is invested at the end of each month in account paying interest 6% per compounded monthly , What is the future value of this annuity after 10th payment ? (a) Rs. 51, 100 (b) Rs.52,200 (c) Rs.53, 300 (d) Rs.54, 500? 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.2000 is invested at the end of each month in account paying interest 6% per compounded monthly , What is the future value of this annuity after 10th payment ? (a) Rs. 51, 100 (b) Rs.52,200 (c) Rs.53, 300 (d) Rs.54, 500? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rs.2000 is invested at the end of each month in account paying interest 6% per compounded monthly , What is the future value of this annuity after 10th payment ? (a) Rs. 51, 100 (b) Rs.52,200 (c) Rs.53, 300 (d) Rs.54, 500?.
Rs.2000 is invested at the end of each month in account paying interest 6% per compounded monthly , What is the future value of this annuity after 10th payment ? (a) Rs. 51, 100 (b) Rs.52,200 (c) Rs.53, 300 (d) Rs.54, 500? 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.2000 is invested at the end of each month in account paying interest 6% per compounded monthly , What is the future value of this annuity after 10th payment ? (a) Rs. 51, 100 (b) Rs.52,200 (c) Rs.53, 300 (d) Rs.54, 500? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rs.2000 is invested at the end of each month in account paying interest 6% per compounded monthly , What is the future value of this annuity after 10th payment ? (a) Rs. 51, 100 (b) Rs.52,200 (c) Rs.53, 300 (d) Rs.54, 500?.
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