If the payment of ₹2,000 is made at the end of every quarter for 10 years at the rate of 8% per year, then find the amount of annuity.
Question
If the payment of ₹2,000 is made at the end of every quarter for 10 years at the rate of 8% per year, then find the amount of annuity.
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Solution 1
To calculate the amount of annuity, we can use the formula for the future value of an ordinary annuity:
FV = P * [(1 + r/n)^(nt) - 1] / (r/n)
where:
- FV is the future value of the annuity
- P is the payment per period (₹2,000 in this case)
- r is the annual interest rate (8% or 0.08 in this case) Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv
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