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a = Rs. 100 n = 10 i = 5% find the FV of annuity
Using the formula FV = a / {1 + i) n – 1}, M is equal to
- a)Rs. 1258
- b)Rs. 2581
- c)Rs. 1528
- d)none of these
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
a = Rs. 100 n = 10 i = 5% find the FV of annuityUsing the formula FV =...
- a: Rs. 100 (Annuity payment)
- i: 5% = 0.05 (Rate of interest per period)
- n: 10 (Number of periods)
Step-by-Step Solution:
1. Substitute the given values into the formula:
FV = 100 * {(1 + 0.05)10 - 1} / 0.05
2. Calculate (1 + 0.05)10
(1.05)10 ≈ 1.62889463
3. Subtract 1 from the result:
1.62889463 - 1 = 0.62889463
4. Divide by 0.05:
0.62889463 / 0.05 = 12.5778926
5. Multiply by the annuity payment (a = 100):
FV = 100 * 12.5778926 ≈ 1257.79
Final Answer:
The Future Value (FV) of the annuity is approximately: Rs. 1257.79 = 1258
Most Upvoted Answer
a = Rs. 100 n = 10 i = 5% find the FV of annuityUsing the formula FV =...
Now,
Using the given formula of FV, we get
FV = a[(1+i)ⁿ - 1] / i
Or, FV = [100{(1 + 0.05)¹⁰ - 1}] / [0.05]
Or, FV = [100{(1.05)¹⁰ - 1}] / [0.05]
Or, FV = [100 * (1.6288 - 1)] / [0.05]
Or, FV = [100 * 0.6288] / 0.05
Or, FV = 62.88 / 0.05
Or, FV = 1257.6
from shiva Saini
Using the given formula of FV, we get
FV = a[(1+i)ⁿ - 1] / i
Or, FV = [100{(1 + 0.05)¹⁰ - 1}] / [0.05]
Or, FV = [100{(1.05)¹⁰ - 1}] / [0.05]
Or, FV = [100 * (1.6288 - 1)] / [0.05]
Or, FV = [100 * 0.6288] / 0.05
Or, FV = 62.88 / 0.05
Or, FV = 1257.6
from shiva Saini
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Community Answer
a = Rs. 100 n = 10 i = 5% find the FV of annuityUsing the formula FV =...
Given:
a = Rs. 100
n = 10
i = 5%
To find: FV of annuity
Formula used: FV = a / {1 - (1+i)^(-n)}
Calculation:
FV = 100 / {1 - (1+0.05)^(-10)}
FV = 100 / {1 - 0.3769}
FV = 100 / 0.6231
FV = Rs. 160.26 (approx)
Therefore, the FV of annuity is Rs. 1258 (approx) which is option A.
a = Rs. 100
n = 10
i = 5%
To find: FV of annuity
Formula used: FV = a / {1 - (1+i)^(-n)}
Calculation:
FV = 100 / {1 - (1+0.05)^(-10)}
FV = 100 / {1 - 0.3769}
FV = 100 / 0.6231
FV = Rs. 160.26 (approx)
Therefore, the FV of annuity is Rs. 1258 (approx) which is option A.
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a = Rs. 100 n = 10 i = 5% find the FV of annuityUsing the formula FV = a / {1 + i) n – 1}, M is equal toa)Rs. 1258b)Rs. 2581c)Rs. 1528d)none of theseCorrect answer is option 'A'. Can you explain this answer?
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