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Rs.1000 is invested at the end of each month in an account paying interest 6% per year compounded monthly. What is the future value of annuity after 10 th payment? (Given that (1.005) 10 = 1.0511)
  • a)
    Rs.10220
  • b)
    Rs.20000
  • c)
    Rs.1020
  • d)
    None 
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Rs.1000 is invested at the end of each month in an account paying inte...
To find the future value of an annuity, we can use the formula:

FV = P * [(1 + r)^n - 1] / r

Where:
FV = future value
P = payment per period
r = interest rate per period
n = number of periods

Given:
P = Rs.1000
r = 6% per year = 0.06/12 = 0.005 per month
n = 10

Substituting these values into the formula, we get:

FV = 1000 * [(1 + 0.005)^10 - 1] / 0.005

Calculating the exponent separately, we have:

(1 + 0.005)^10 = 1.0511

Substituting this value back into the formula, we have:

FV = 1000 * (1.0511 - 1) / 0.005
FV = 1000 * 0.0511 / 0.005
FV = 10220

Therefore, the future value of the annuity after the 10th payment is Rs.10220.

So, the correct answer is option 'A': Rs.10220.
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Rs.1000 is invested at the end of each month in an account paying interest 6% per year compounded monthly. What is the future value of annuity after 10 th payment? (Given that (1.005) 10 = 1.0511)a)Rs.10220b)Rs.20000c)Rs.1020d)NoneCorrect answer is option 'A'. Can you explain this answer?
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Rs.1000 is invested at the end of each month in an account paying interest 6% per year compounded monthly. What is the future value of annuity after 10 th payment? (Given that (1.005) 10 = 1.0511)a)Rs.10220b)Rs.20000c)Rs.1020d)NoneCorrect answer is option 'A'. Can you explain this answer? 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 Rs.1000 is invested at the end of each month in an account paying interest 6% per year compounded monthly. What is the future value of annuity after 10 th payment? (Given that (1.005) 10 = 1.0511)a)Rs.10220b)Rs.20000c)Rs.1020d)NoneCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rs.1000 is invested at the end of each month in an account paying interest 6% per year compounded monthly. What is the future value of annuity after 10 th payment? (Given that (1.005) 10 = 1.0511)a)Rs.10220b)Rs.20000c)Rs.1020d)NoneCorrect answer is option 'A'. Can you explain this answer?.
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