Question

Find the amount of annuity of Rs. 4,000 per annum for 10 years reckoning interest at 10% p.a.
[Given : $(1.1{)}^{10}=2.594$]

• A. Rs. 63,760
• B. Rs. 63,670
• C. Rs. 63,205
• D. None.

Answer 1

Answer: (A)

Rs. 63,760

$P=Rs.4000$

$n=10$

$x=10$%

$=\frac{10}{100}=0.1$

$M=\frac{P}{r}({(1+r)}^n-1)$

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

$=40000(2.594-1)$

$=63760$.

$\therefore$ Amount of annuity $=63760$