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Given annuity of ` 100 amounts to ` 3137.12 at 4.5% p.a C. I. The number of years will be?
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Given annuity of ` 100 amounts to ` 3137.12 at 4.5% p.a C. I. The numb...
Explanation of Annuity Calculation
An annuity is a financial product that pays a fixed amount of money to an individual over a certain period of time. In this case, the annuity amount is ` 100 and it is compounded annually at a rate of 4.5% per annum. The total amount of the annuity after a certain number of years is ` 3137.12.
Calculation of the Number of Years
The formula for calculating the future value of an annuity is:
FV = PMT x [(1 + r)n - 1] / r
Where:
- FV is the future value of the annuity
- PMT is the annuity payment
- r is the interest rate
- n is the number of years
Substituting the given values in the formula:
3137.12 = 100 x [(1 + 0.045)n - 1] / 0.045
Simplifying the equation:
3137.12 x 0.045 = 100 x [(1 + 0.045)n - 1]
141.1664 = [(1 + 0.045)n - 1]
[(1 + 0.045)n - 1] = 141.1664
[(1 + 0.045)n] = 142.1664
n log(1 + 0.045) = log(142.1664)
n = log(142.1664) / log(1 + 0.045)
n = 16.09 years (approx.)
Conclusion
Therefore, it will take approximately 16.09 years for an annuity of ` 100 compounded annually at a rate of 4.5% per annum to reach a total amount of ` 3137.12.
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Given annuity of ` 100 amounts to ` 3137.12 at 4.5% p.a C. I. The number of years will be?
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Given annuity of ` 100 amounts to ` 3137.12 at 4.5% p.a C. I. The number of years will be? 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 Given annuity of ` 100 amounts to ` 3137.12 at 4.5% p.a C. I. The number of years will be? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Given annuity of ` 100 amounts to ` 3137.12 at 4.5% p.a C. I. The number of years will be?.
Given annuity of ` 100 amounts to ` 3137.12 at 4.5% p.a C. I. The number of years will be? 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 Given annuity of ` 100 amounts to ` 3137.12 at 4.5% p.a C. I. The number of years will be? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Given annuity of ` 100 amounts to ` 3137.12 at 4.5% p.a C. I. The number of years will be?.
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