Question

Find the present value of annuity immediate of $\text{Rs.}18,000$ p.a for $3$ years at $9\%$ p.a compounded annually.

[Given $(1.09{)}^3=1.29]$

Answer 1

Total amount $=P{(1+\frac{r}{100})}^t$

$=18000(1+\frac{9}{100}{)}^3$

$=18000(1.09{)}^3$

$=18000\times 1.29=\text{Rs}23,220$