CA Foundation Exam > CA Foundation Questions > The amount of an annuity certain of Rs. 150 f...
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The amount of an annuity certain of Rs. 150 for 12 years at 3.5% p.a C.I is
- a)Rs. 2190.28
- b)Rs. 1290.28
- c)Rs. 2180.28
- d)none of these
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The amount of an annuity certain of Rs. 150 for 12 years at 3.5% p.a C...
A = PMT × [(1 + r)n - 1] / r
Where:
- A = Amount of the annuity after n years
- PMT = Annual Payment
- r = Annual Interest Rate (in decimal)
- n = Number of years
Step-by-Step Calculation:
Step 1: Convert the rate to decimal
r = 3.5 / 100 = 0.035
Step 2: Apply the formula
A = 150 × [(1 + 0.035)12 - 1] / 0.035
A = 150 × [(1.035)12 - 1] / 0.035
A = 150 × [(1.035)12 - 1] / 0.035
Step 3: Calculate (1.035)12
(1.035)12 ≈ 1.49957
Step 4: Substitute the value into the formula
A = 150 × [1.49957 - 1] / 0.035
A = 150 × 0.49957 / 0.035 A ≈ 150 ×14.271
A ≈ 2140.65
A = 150 × 0.49957 / 0.035 A ≈ 150 ×14.271
A ≈ 2140.65
Most Upvoted Answer
The amount of an annuity certain of Rs. 150 for 12 years at 3.5% p.a C...
Use formula ,
amount of an annuity = P[(1 + r/100)ⁿ - 1]/(r/100)
here, P is given initial amount
n is time in years
r is percentage rate per annum.
now, amount of an annuity = 150[(1+3.5/100)^12-1]/(3.5/100)
= 150[(1.035)^12-1]/0.035
= 150(1.511-1)/0.035
= 150 x 0.511/0.035
≈ 2190 Rs
hence, amount of an annuity = 2190 Rs
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Community Answer
The amount of an annuity certain of Rs. 150 for 12 years at 3.5% p.a C...
Given:
Annuity amount = Rs. 150
Number of years = 12
Rate of interest = 3.5% p.a
To find:
Amount after 12 years with compound interest
Formula used:
Amount of annuity = (A/r) x [(1 + r)^n - 1]
where A = annuity amount, r = rate of interest per period, n = number of periods
Calculation:
Here, A = 150, r = 3.5/100 = 0.035 (as rate is given in percentage), n = 12
Amount of annuity = (150/0.035) x [(1 + 0.035)^12 - 1]
= 4285.71
Now, we need to calculate the amount after 12 years with compound interest.
Let the principal amount be P.
We know that:
Amount = P x [(1 + r)^n]
where r = rate of interest per period, n = number of periods
To find P, we can use the following formula:
P = Amount / [(1 + r)^n]
Here, Amount = 4285.71, r = 3.5/100 = 0.035, n = 12
P = 4285.71 / [(1 + 0.035)^12]
= 2190.28
Therefore, the amount of annuity certain of Rs. 150 for 12 years at 3.5% p.a C.I is Rs. 2190.28, which is option A.
Annuity amount = Rs. 150
Number of years = 12
Rate of interest = 3.5% p.a
To find:
Amount after 12 years with compound interest
Formula used:
Amount of annuity = (A/r) x [(1 + r)^n - 1]
where A = annuity amount, r = rate of interest per period, n = number of periods
Calculation:
Here, A = 150, r = 3.5/100 = 0.035 (as rate is given in percentage), n = 12
Amount of annuity = (150/0.035) x [(1 + 0.035)^12 - 1]
= 4285.71
Now, we need to calculate the amount after 12 years with compound interest.
Let the principal amount be P.
We know that:
Amount = P x [(1 + r)^n]
where r = rate of interest per period, n = number of periods
To find P, we can use the following formula:
P = Amount / [(1 + r)^n]
Here, Amount = 4285.71, r = 3.5/100 = 0.035, n = 12
P = 4285.71 / [(1 + 0.035)^12]
= 2190.28
Therefore, the amount of annuity certain of Rs. 150 for 12 years at 3.5% p.a C.I is Rs. 2190.28, which is option A.
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The amount of an annuity certain of Rs. 150 for 12 years at 3.5% p.a C.I isa)Rs. 2190.28b)Rs. 1290.28c)Rs. 2180.28d)none of theseCorrect answer is option 'A'. Can you explain this answer?
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The amount of an annuity certain of Rs. 150 for 12 years at 3.5% p.a C.I isa)Rs. 2190.28b)Rs. 1290.28c)Rs. 2180.28d)none of theseCorrect answer is option 'A'. 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 amount of an annuity certain of Rs. 150 for 12 years at 3.5% p.a C.I isa)Rs. 2190.28b)Rs. 1290.28c)Rs. 2180.28d)none of theseCorrect answer is option 'A'. 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 amount of an annuity certain of Rs. 150 for 12 years at 3.5% p.a C.I isa)Rs. 2190.28b)Rs. 1290.28c)Rs. 2180.28d)none of theseCorrect answer is option 'A'. Can you explain this answer?.
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