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The present value of an annuity of Rs. 3000 for 15 years at 4.5% p.a CI is
- a)Rs. 23809.41
- b)Rs. 32218.63
- c)Rs. 32908.41
- d)none of these
Correct answer is option 'B'. Can you explain this answer?
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The present value of an annuity of Rs. 3000 for 15 years at 4.5% p.a C...
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The present value of an annuity of Rs. 3000 for 15 years at 4.5% p.a C...
Given:
Annuity amount (PMT) = Rs. 3000
Time period (n) = 15 years
Rate of interest (r) = 4.5% p.a
To find: Present value of the annuity
Formula:
Present value of annuity = PMT x [{(1 + r)n - 1} / r] x (1+r)-n
Calculation:
Substituting the given values in the formula,
Present value of annuity = 3000 x [{(1 + 0.045)15 - 1} / 0.045] x (1+0.045)-15
= 3000 x (16.6903 / 0.045) x 0.398
= 32218.63
Therefore, the present value of an annuity of Rs. 3000 for 15 years at 4.5% p.a CI is Rs. 32218.63.
Annuity amount (PMT) = Rs. 3000
Time period (n) = 15 years
Rate of interest (r) = 4.5% p.a
To find: Present value of the annuity
Formula:
Present value of annuity = PMT x [{(1 + r)n - 1} / r] x (1+r)-n
Calculation:
Substituting the given values in the formula,
Present value of annuity = 3000 x [{(1 + 0.045)15 - 1} / 0.045] x (1+0.045)-15
= 3000 x (16.6903 / 0.045) x 0.398
= 32218.63
Therefore, the present value of an annuity of Rs. 3000 for 15 years at 4.5% p.a CI is Rs. 32218.63.
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The present value of an annuity of Rs. 3000 for 15 years at 4.5% p.a CI isa)Rs. 23809.41b)Rs. 32218.63c)Rs. 32908.41d)none of theseCorrect answer is option 'B'. Can you explain this answer?
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