Question 15 Marks
How much amount has to be deposited at the end of each year for 4 years at 6% p.a compounded annually so as to get a sum of ₹ 80,000. [Use $\left.(1.06)^4=1.262\right]$
Answer
View full question & answer→ Sum of annuity = ₹ 80,000, Each annuity = ₹ x
$r=6 \%$ p.a. $\Rightarrow i =0.06$
n = 4 years
$\begin{array}{l}\therefore 80000=\frac{x}{0.06}\left[(1+0.06)^4-1\right] \\ \Rightarrow 4800= x \left[(1.06)^4-1\right] \\ \Rightarrow 4800= x (1.262-1) \Rightarrow 4800=0.262 x \end{array}$
$\Rightarrow x=\frac{4800}{0.262}=18320.61$
Amount of each annuity = ₹ 18320.61 ~ ₹ 18321
$r=6 \%$ p.a. $\Rightarrow i =0.06$
n = 4 years
$\begin{array}{l}\therefore 80000=\frac{x}{0.06}\left[(1+0.06)^4-1\right] \\ \Rightarrow 4800= x \left[(1.06)^4-1\right] \\ \Rightarrow 4800= x (1.262-1) \Rightarrow 4800=0.262 x \end{array}$
$\Rightarrow x=\frac{4800}{0.262}=18320.61$
Amount of each annuity = ₹ 18320.61 ~ ₹ 18321