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Find the amount of an ordinary annuity of Rs 3,200 per annum for 12 years at the rate of interest of 10% per year, [(1.1)12 = 3.1384]

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Here a = 3,200, n = 12, and i = \(\frac{10}{100}\) = 0.1 

A = \(\frac{a}{i}\)[(1 + i)n – 1] 

= \(\frac{3200}{0.1}\)[(1 + 0.1)12 – 1] 

= 32000 [(1.1)12 – 1] 

= 32000 [3.1384 – 1] [∵ (1.1)12 = 3.1384] 

= 32000 [2.1384] 

= Rs 68,428.8

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