CA Foundation Exam > CA Foundation Questions > The present value of annuity of Rs. 5000 per ...
Start Learning for Free
The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually is
- a)Rs. 46000
- b)Rs. 46850
- c)Rs. 15000
- d)None of these
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The present value of annuity of Rs. 5000 per annum for 12 years at 4% ...
Ans.
Method to Solve :
Free Test
FREE
| Start Free Test |
Community Answer
The present value of annuity of Rs. 5000 per annum for 12 years at 4% ...
Given,
- Annuity amount = Rs. 5000 per annum
- Number of years = 12
- Interest rate = 4% p.a. compounded annually
To find: Present value of annuity
We can use the formula for present value of an annuity:
PV = (A/r) * [1 - (1+r)^(-n)]
where, A = annuity amount
r = interest rate
n = number of years
Substituting the given values, we get:
PV = (5000/0.04) * [1 - (1+0.04)^(-12)]
PV = 125000 * (1 - 0.512368)
PV = 125000 * 0.487632
PV = 60954
Therefore, the present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually is Rs. 60954.
Hence, the correct answer is option D (None of these).
- Annuity amount = Rs. 5000 per annum
- Number of years = 12
- Interest rate = 4% p.a. compounded annually
To find: Present value of annuity
We can use the formula for present value of an annuity:
PV = (A/r) * [1 - (1+r)^(-n)]
where, A = annuity amount
r = interest rate
n = number of years
Substituting the given values, we get:
PV = (5000/0.04) * [1 - (1+0.04)^(-12)]
PV = 125000 * (1 - 0.512368)
PV = 125000 * 0.487632
PV = 60954
Therefore, the present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually is Rs. 60954.
Hence, the correct answer is option D (None of these).
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. Can you explain this answer?
Question Description
The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. 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 The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. 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 The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. Can you explain this answer?.
The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. 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 The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. 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 The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. Can you explain this answer?.
Solutions for The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a. C.I. annually isa)Rs. 46000b)Rs. 46850c)Rs. 15000d)None of theseCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup