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Suppose your parent decides to open PPF account in your name with rs 10000 every year starting from today for next 15 years. When you receive and get 8.5% per annum interest rate compounded annualy. What is the present value of this annuity??? Options A:83042 B:166084 C:93042 D:111667?
Most Upvoted Answer
Suppose your parent decides to open PPF account in your name with rs 1...
1÷1.085........ press ' = ' 15 times..... Then press GT..... Then multiply the sum with 10000...... Then U will get 83042 as answer :)
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Suppose your parent decides to open PPF account in your name with rs 1...
Calculation of Present Value of Annuity
Step 1: Calculate the future value of the annuity.
Using the formula for future value of an annuity, we get:
FV = A * [(1 + r)^n - 1]/r
Where,
A = Annual deposit = Rs. 10,000
r = Annual interest rate = 8.5% = 0.085
n = Number of years = 15
FV = 10,000 * [(1 + 0.085)^15 - 1]/0.085
FV = Rs. 2,41,437.34
Step 2: Calculate the present value of the annuity.
Using the formula for present value of a future sum, we get:
PV = FV / (1 + r)^n
Where,
FV = Future value of the annuity = Rs. 2,41,437.34
r = Annual interest rate = 8.5% = 0.085
n = Number of years = 15
PV = 2,41,437.34 / (1 + 0.085)^15
PV = Rs. 83,042.01
Therefore, the present value of the annuity is Rs. 83,042.01.
Option A is the correct answer.
Step 1: Calculate the future value of the annuity.
Using the formula for future value of an annuity, we get:
FV = A * [(1 + r)^n - 1]/r
Where,
A = Annual deposit = Rs. 10,000
r = Annual interest rate = 8.5% = 0.085
n = Number of years = 15
FV = 10,000 * [(1 + 0.085)^15 - 1]/0.085
FV = Rs. 2,41,437.34
Step 2: Calculate the present value of the annuity.
Using the formula for present value of a future sum, we get:
PV = FV / (1 + r)^n
Where,
FV = Future value of the annuity = Rs. 2,41,437.34
r = Annual interest rate = 8.5% = 0.085
n = Number of years = 15
PV = 2,41,437.34 / (1 + 0.085)^15
PV = Rs. 83,042.01
Therefore, the present value of the annuity is Rs. 83,042.01.
Option A is the correct answer.
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Suppose your parent decides to open PPF account in your name with rs 10000 every year starting from today for next 15 years. When you receive and get 8.5% per annum interest rate compounded annualy. What is the present value of this annuity??? Options A:83042 B:166084 C:93042 D:111667?
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Suppose your parent decides to open PPF account in your name with rs 10000 every year starting from today for next 15 years. When you receive and get 8.5% per annum interest rate compounded annualy. What is the present value of this annuity??? Options A:83042 B:166084 C:93042 D:111667? 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 Suppose your parent decides to open PPF account in your name with rs 10000 every year starting from today for next 15 years. When you receive and get 8.5% per annum interest rate compounded annualy. What is the present value of this annuity??? Options A:83042 B:166084 C:93042 D:111667? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Suppose your parent decides to open PPF account in your name with rs 10000 every year starting from today for next 15 years. When you receive and get 8.5% per annum interest rate compounded annualy. What is the present value of this annuity??? Options A:83042 B:166084 C:93042 D:111667?.
Suppose your parent decides to open PPF account in your name with rs 10000 every year starting from today for next 15 years. When you receive and get 8.5% per annum interest rate compounded annualy. What is the present value of this annuity??? Options A:83042 B:166084 C:93042 D:111667? 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 Suppose your parent decides to open PPF account in your name with rs 10000 every year starting from today for next 15 years. When you receive and get 8.5% per annum interest rate compounded annualy. What is the present value of this annuity??? Options A:83042 B:166084 C:93042 D:111667? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Suppose your parent decides to open PPF account in your name with rs 10000 every year starting from today for next 15 years. When you receive and get 8.5% per annum interest rate compounded annualy. What is the present value of this annuity??? Options A:83042 B:166084 C:93042 D:111667?.
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Suppose your parent decides to open PPF account in your name with rs 10000 every year starting from today for next 15 years. When you receive and get 8.5% per annum interest rate compounded annualy. What is the present value of this annuity??? Options A:83042 B:166084 C:93042 D:111667?, a detailed solution for Suppose your parent decides to open PPF account in your name with rs 10000 every year starting from today for next 15 years. When you receive and get 8.5% per annum interest rate compounded annualy. What is the present value of this annuity??? Options A:83042 B:166084 C:93042 D:111667? has been provided alongside types of Suppose your parent decides to open PPF account in your name with rs 10000 every year starting from today for next 15 years. When you receive and get 8.5% per annum interest rate compounded annualy. What is the present value of this annuity??? Options A:83042 B:166084 C:93042 D:111667? theory, EduRev gives you an
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