CA Foundation Exam > CA Foundation Questions > How much amount is required to be invested ev...
Start Learning for Free
How much amount is required to be invested every year so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%?
Most Upvoted Answer
How much amount is required to be invested every year so as to accumul...
Calculation of Required Investment
To calculate the amount required to be invested every year to accumulate ₹300000 at the end of 10 years with an annual compounded interest rate of 10%, we need to use the formula:
FV = PV x (1 + r)^n
Where,
- FV = Future Value
- PV = Present Value
- r = Annual Interest Rate
- n = Number of Years
Substitute Given Values
Initially, we have a present value of ₹0 and we want to accumulate ₹300000 at the end of 10 years. So,
- PV = ₹0
- FV = ₹300000
- r = 10%
- n = 10 years
Calculate Required Investment
Now, we can calculate the required investment using the formula:
PV = FV / (1 + r)^n
Here, we need to find out the present value or the amount that needs to be invested every year. So, we can rearrange the formula as follows:
Investment = FV / [(1 + r)^n - 1] / r
Final Calculation
Substituting the given values in the above formula, we get:
Investment = ₹300000 / [(1 + 0.1)^10 - 1] / 0.1
Investment = ₹300000 / 6.1446
Investment = ₹48802.12 (approx.)
Conclusion
Hence, the amount required to be invested every year to accumulate ₹300000 at the end of 10 years with an annual compounded interest rate of 10% is ₹48802.12 (approx.).
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
How much amount is required to be invested every year so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%?
Question Description
How much amount is required to be invested every year so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%? 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 so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%? 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 so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%?.
How much amount is required to be invested every year so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%? 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 so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%? 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 so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%?.
Solutions for How much amount is required to be invested every year so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%? 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 How much amount is required to be invested every year so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%? defined & explained in the simplest way possible. Besides giving the explanation of
How much amount is required to be invested every year so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%?, a detailed solution for How much amount is required to be invested every year so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%? has been provided alongside types of How much amount is required to be invested every year so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%? theory, EduRev gives you an
ample number of questions to practice How much amount is required to be invested every year so as to accumulate ₹300000 at the end of 10 years if interest is compounded annually at 10%? 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