A company has to redeem debentures of ` 10,00,000 at the end of 3 years from now. How much money should the company accumulate every year at 10% interest rate?
Question
Solution 1
To solve this problem, we need to use the formula for the future value of an annuity, which is:
FV = P * [(1 + r)^n - 1] / r
Where: FV = Future Value (the total amount of money the company needs to accumulate, which is `10,00,000) P = Payment per period (the amount of money the company needs to ac 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
Similar Questions
A company has to redeem debentures of ` 10,00,000 at the end of 3 years from now. How much money should the company accumulate every year at 10% interest rate?
What annually compounded rate per year will give the same value at the end of 10 years as 7% p.a. simple interest?
A certain sum amounts to ₹57,600 at the end of five years and to ₹48,960 at the end of three years both being at simple interest. Find the rate of interest.
Arjun deposited ` 4500 with a company at 20% p.a. for 3 years at compound interest. Findthe compound interest and the amount he received at the end of 3 years.
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.