Ask a Question
x

Choose Country Code

x

Direction

x

Ask a Question

  • Ask a Question
  • Scan a Question
  • Post MCQ
  • Note: File extension must be of jpg, jpeg, png, bmp format and file size must not exceed 5 MB
x

Ask a Question

x

Hire a Tutor

Answers and Solutions

What's Your Question?
Answer

Given -   n=24, PMT = 4000 and FV = 106000 Now for Annuity FV = C*/i * ((1+i)^n - 1)​,

 putting all values we found 10% so answer (C)

Answer

ANS--C

Depositing Rs 4000 in a recurring deposit each month for two years, which is equal to 24 months. So, n=24, PMT = 4000 and FV = 106000.

Now for Annuity FV = C*/i * ((1+i)^n - 1) here i is monthly interest rate, Calculating i=0.0085 or 0.85% per month, annualizing this returns = 10% pa

Answer

Depositing Rs 4000 in a recurring deposit each month for two years, which is equal to 24 months. So, n=24, PMT = 4000 and FV = 106000.

Now for Annuity FV = C*/i * ((1+i)^n - 1) here i is monthly interest rate, Calculating i=0.0085 or 0.85% per month, annualizing this returns = 10.2% p.a.

Answer

I guess the problem seems to be asking depositing Rs 4000 in a recurring deposit each month for two years. In which case n=24, PMT = 4000 and FV = 106000 Now for Annuity FV = C*/i * ((1+i)^n - 1) here i is monthly interest rate, Calculating i=0.0085 or 0.85% per month, annualizing this returns rate of interest as 10.2% p.a.

Post Answer and Earn Credit Points

Get 5 credit points for each correct answer. The best one gets 25 in all.

Post Answer