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The amount of annuity certain of rs 150 for 12 years at 3.5%p.a c.i is?
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The amount of annuity certain of rs 150 for 12 years at 3.5%p.a c.i is...
Calculation of Annuity Certain


Given:


  • Amount of Annuity: Rs. 150

  • Duration: 12 years

  • Interest Rate: 3.5% p.a (compounded annually)



Formula:

The formula to calculate the Annuity Certain is:

Annuity Certain = (R x (1 - (1+i)^-n))/i

Where R is the amount of annuity, i is the interest rate and n is the duration of the annuity.


Calculation:

Substituting the given values in the formula, we get:

Annuity Certain = (150 x (1 - (1+0.035)^-12))/0.035

Annuity Certain = Rs. 1,532.98


Interpretation:

Therefore, the Annuity Certain of Rs. 150 for 12 years at 3.5% p.a compounded annually is Rs. 1,532.98. This means that the investor will receive a total of Rs. 1,532.98 over the course of 12 years, with each payment being Rs. 150.
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The amount of annuity certain of rs 150 for 12 years at 3.5%p.a c.i is?
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