Question

The interest is supposed compound unless the contrary is state.
Find the amount of an annuity of $100$ pounds in $20$ years, allowing compound interest at $4\frac{1}{2}$ per cent.

Given : $\log 1.045=.0191163,\log 24.117=1.3823260$.

Answer 1

$A=100{(1+\frac{9}{2})}^{20}=100{\left(1.045\right)}^{20}$

$\Rightarrow \log A=2+20\log 1.045$

$\Rightarrow \log A=2.3823260$

$\Rightarrow A=241.117$