CA Foundation Exam > CA Foundation Questions > An annuity consisting of payments of Rs. 500 ...
Start Learning for Free
An annuity consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is?
Most Upvoted Answer
An annuity consisting of payments of Rs. 500 made at the end of every ...
Calculation of Future Value of Annuity
An annuity is a series of equal payments made at regular intervals. In this case, the annuity consists of payments of Rs. 500 made at the end of every 3 months for 4 years. The rate of interest is 6% compounded quarterly. We need to calculate the future value of this annuity.
Formula to Calculate Future Value of Annuity
The formula to calculate the future value of an annuity is:
FV = (PMT x (((1 + r/n)^(n*t)) - 1)) / (r/n)
Where,
- FV = Future value of annuity
- PMT = Payment made at regular intervals
- r = Annual interest rate
- n = Number of compounding periods per year
- t = Number of years
Calculation of Future Value of Annuity
Using the formula mentioned above, we can calculate the future value of the annuity as follows:
FV = (500 x (((1 + 0.06/4)^(4*4)) - 1)) / (0.06/4)
FV = Rs. 27,521.59
Explanation
The future value of the annuity is Rs. 27,521.59. This means that if you invest Rs. 500 at the end of every 3 months for 4 years at an interest rate of 6% compounded quarterly, the value of your investment would be Rs. 27,521.59 after 4 years. This is because the interest earned on the investment is reinvested, leading to compounding of interest.
Community Answer
An annuity consisting of payments of Rs. 500 made at the end of every ...
8966.18
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
An annuity consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is?
Question Description
An annuity consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is? 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 consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An annuity consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is?.
An annuity consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is? 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 consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An annuity consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is?.
Solutions for An annuity consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of An annuity consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is? defined & explained in the simplest way possible. Besides giving the explanation of
An annuity consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is?, a detailed solution for An annuity consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is? has been provided alongside types of An annuity consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is? theory, EduRev gives you an
ample number of questions to practice An annuity consisting of payments of Rs. 500 made at the end of every 3 months for 4 years at the rate of 6% compounded quarterly. Its Future value is? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup