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A person desires to create a fund to be invested at 10% CI per annum to provide for a prize of Rs. 300 every year. Using V=a/I find V and V will be
- a)Rs. 2000
- b)Rs. 2500
- c)Rs. 3000
- d)None of these
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
A person desires to create a fund to be invested at 10% CI per annum t...
Solution:
Given:
- The person desires to create a fund to be invested at 10% CI per annum.
- The fund should provide for a prize of Rs. 300 every year.
We need to find the value of the fund, V, that would be required to generate an annual interest of Rs. 300 at a 10% compound interest rate.
Formula for Compound Interest:
V = A / (1 + I)^n
where:
V = Present value or principal amount
A = Future value or amount after n years
I = Interest rate per period
n = Number of periods
In this case, we are given that the annual interest is Rs. 300 and the interest rate is 10%. Let's calculate the value of V using the given data.
Calculation:
V = A / (1 + I)^n
V = 300 / (1 + 0.10)^1
V = 300 / 1.10
V = 272.73
Therefore, the value of the fund, V, required to generate an annual interest of Rs. 300 at a 10% compound interest rate is approximately Rs. 272.73.
Since none of the given options match this value, it seems there may be an error in the question or the options provided.
Given:
- The person desires to create a fund to be invested at 10% CI per annum.
- The fund should provide for a prize of Rs. 300 every year.
We need to find the value of the fund, V, that would be required to generate an annual interest of Rs. 300 at a 10% compound interest rate.
Formula for Compound Interest:
V = A / (1 + I)^n
where:
V = Present value or principal amount
A = Future value or amount after n years
I = Interest rate per period
n = Number of periods
In this case, we are given that the annual interest is Rs. 300 and the interest rate is 10%. Let's calculate the value of V using the given data.
Calculation:
V = A / (1 + I)^n
V = 300 / (1 + 0.10)^1
V = 300 / 1.10
V = 272.73
Therefore, the value of the fund, V, required to generate an annual interest of Rs. 300 at a 10% compound interest rate is approximately Rs. 272.73.
Since none of the given options match this value, it seems there may be an error in the question or the options provided.
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A person desires to create a fund to be invested at 10% CI per annum to provide for a prize of Rs. 300 every year. Using V=a/I find V and V will bea)Rs. 2000b)Rs. 2500c)Rs. 3000d)None of theseCorrect answer is option 'C'. Can you explain this answer?
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A person desires to create a fund to be invested at 10% CI per annum to provide for a prize of Rs. 300 every year. Using V=a/I find V and V will bea)Rs. 2000b)Rs. 2500c)Rs. 3000d)None of theseCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A person desires to create a fund to be invested at 10% CI per annum to provide for a prize of Rs. 300 every year. Using V=a/I find V and V will bea)Rs. 2000b)Rs. 2500c)Rs. 3000d)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person desires to create a fund to be invested at 10% CI per annum to provide for a prize of Rs. 300 every year. Using V=a/I find V and V will bea)Rs. 2000b)Rs. 2500c)Rs. 3000d)None of theseCorrect answer is option 'C'. Can you explain this answer?.
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