Question

Find the amount of the annuity of Rs 150 payable in half yearly instalments for 15 years at 4% per annum interest also payable half yearly

• A. Rs.$9903.45$
• B. Rs.$3003.45$
• C. Rs.$8103.45$
• D. Rs.$3103.45$

Answer 1

The correct option is D Rs.$3103.45$

$P=Rs.150$

Amount payable in half yearly so $,r=4\%/2=2\%,t=15\times 2=30$

$A=\frac{1}{2}{\sum }_{n=1}^{30}P{(1+\frac{r}{100})}^n=\frac{1}{2}{\sum }_{n=1}^{30}150{(1+\frac{2}{100})}^n=75\times 41.38=Rs.3103.45$