Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
1.4k views
in Financial Mathematics by (47.8k points)
closed by

Find the amount of an ordinary annuity of 12 monthly payments of Rs 1,500 that earns interest at 12% per annum compounded monthly. [(1.01)12 = 1.1262]

1 Answer

+1 vote
by (47.4k points)
selected by
 
Best answer

Here a = 1,500, n = 1 year, and i = \(\frac{12}{100}\)

= 150000 [(1.01)12 – 1] 

= 150000 [1.1262 – 1] (∵ (1.01)12 = 1.1262) 

= 150000 [0.1262] 

= Rs 18,930

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

...