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9. Moi plans to send his son for higher studies abroad after 10 years. He expects the cost of these studies to be Rs. 100000. How much should he save at the beginning of g each year to have a sum of Rs. 100000 at the end of 10 years, if the interest rate is 12% compounded annually? Given (1.12)11 = 3.4785495?
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9. Moi plans to send his son for higher studies abroad after 10 years....
Solution:
To calculate the amount Moi should save at the beginning of each year, we can use the formula for compound interest:
A = P(1 + r)n
Where,
A = Amount at the end of 10 years (Rs. 100000)
P = Principal amount (the amount Moi needs to save each year)
r = Annual interest rate (12%)
n = Number of years (10)
Substituting the values in the formula, we get:
100000 = P(1 + 0.12)10
Simplifying the equation, we get:
P = 100000 / (1 + 0.12)10
P = 100000 / 3.4785495
P = Rs. 28,735.36
Therefore, Moi needs to save Rs. 28,735.36 at the beginning of each year for 10 years to have a sum of Rs. 100000 at the end of 10 years, if the interest rate is 12% compounded annually.
Explanation of (1.12)11 = 3.4785495:
(1.12)11 is the value of (1 + r)n in the formula for compound interest. To calculate it, we need to raise the base (1.12) to the power of the exponent (11).
Using a calculator, we get:
(1.12)11 = 3.4785495
This means that if Moi saves Rs. 1 at the beginning of each year for 10 years at an interest rate of 12% compounded annually, he will have a sum of Rs. 3.4785495 at the end of 10 years.
To calculate the amount Moi should save at the beginning of each year, we can use the formula for compound interest:
A = P(1 + r)n
Where,
A = Amount at the end of 10 years (Rs. 100000)
P = Principal amount (the amount Moi needs to save each year)
r = Annual interest rate (12%)
n = Number of years (10)
Substituting the values in the formula, we get:
100000 = P(1 + 0.12)10
Simplifying the equation, we get:
P = 100000 / (1 + 0.12)10
P = 100000 / 3.4785495
P = Rs. 28,735.36
Therefore, Moi needs to save Rs. 28,735.36 at the beginning of each year for 10 years to have a sum of Rs. 100000 at the end of 10 years, if the interest rate is 12% compounded annually.
Explanation of (1.12)11 = 3.4785495:
(1.12)11 is the value of (1 + r)n in the formula for compound interest. To calculate it, we need to raise the base (1.12) to the power of the exponent (11).
Using a calculator, we get:
(1.12)11 = 3.4785495
This means that if Moi saves Rs. 1 at the beginning of each year for 10 years at an interest rate of 12% compounded annually, he will have a sum of Rs. 3.4785495 at the end of 10 years.
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9. Moi plans to send his son for higher studies abroad after 10 years. He expects the cost of these studies to be Rs. 100000. How much should he save at the beginning of g each year to have a sum of Rs. 100000 at the end of 10 years, if the interest rate is 12% compounded annually? Given (1.12)11 = 3.4785495?
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9. Moi plans to send his son for higher studies abroad after 10 years. He expects the cost of these studies to be Rs. 100000. How much should he save at the beginning of g each year to have a sum of Rs. 100000 at the end of 10 years, if the interest rate is 12% compounded annually? Given (1.12)11 = 3.4785495? 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 9. Moi plans to send his son for higher studies abroad after 10 years. He expects the cost of these studies to be Rs. 100000. How much should he save at the beginning of g each year to have a sum of Rs. 100000 at the end of 10 years, if the interest rate is 12% compounded annually? Given (1.12)11 = 3.4785495? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 9. Moi plans to send his son for higher studies abroad after 10 years. He expects the cost of these studies to be Rs. 100000. How much should he save at the beginning of g each year to have a sum of Rs. 100000 at the end of 10 years, if the interest rate is 12% compounded annually? Given (1.12)11 = 3.4785495?.
9. Moi plans to send his son for higher studies abroad after 10 years. He expects the cost of these studies to be Rs. 100000. How much should he save at the beginning of g each year to have a sum of Rs. 100000 at the end of 10 years, if the interest rate is 12% compounded annually? Given (1.12)11 = 3.4785495? 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 9. Moi plans to send his son for higher studies abroad after 10 years. He expects the cost of these studies to be Rs. 100000. How much should he save at the beginning of g each year to have a sum of Rs. 100000 at the end of 10 years, if the interest rate is 12% compounded annually? Given (1.12)11 = 3.4785495? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 9. Moi plans to send his son for higher studies abroad after 10 years. He expects the cost of these studies to be Rs. 100000. How much should he save at the beginning of g each year to have a sum of Rs. 100000 at the end of 10 years, if the interest rate is 12% compounded annually? Given (1.12)11 = 3.4785495?.
Solutions for 9. Moi plans to send his son for higher studies abroad after 10 years. He expects the cost of these studies to be Rs. 100000. How much should he save at the beginning of g each year to have a sum of Rs. 100000 at the end of 10 years, if the interest rate is 12% compounded annually? Given (1.12)11 = 3.4785495? in English & in Hindi are available as part of our courses for CA Foundation.
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