Find the accumulated value of an ordinary simple annuity of Rs 3 000 per year for 7 years, if money is worth j1=8%
P = Periodic payments
r = rate of interest
n = no of years
Future Value of Annuity =P((1+r)n−1)r= \frac{P ( (1 + r)^n - 1 ) }{ r}=rP((1+r)n−1)
=3000×((1+8 %)7−1)8 %=26768.41= \frac{3000 \times ((1 + 8\; \%)^7 - 1) }{ 8\; \%} \\ = 26768.41=8%3000×((1+8%)7−1)=26768.41
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