Question

Find the amount of annuity of Rs. $4000$ p.a. for $10$ years reckoning compound interest at $10\%$ p.a.

• A. Rs. $63,706$
• B. Rs. $63,670$
• C. Rs. $67,360$
• D. Rs. $63,760$

Answer 1

Answer: (D)

Rs. $63,760$

$Payment{}^{\prime }{P}^{\prime }=4000$

$N=10$

$R=10$

$A=P\left(\frac{(1+r{)}^n-1)}{r}\right)$

$=4000\left(\frac{(1.1{)}^{10}-1}{0.1}\right)$

$=63760$