Let us consider an annuity whose periodic payment is Rs. R payable at the end of each payment period for 'n' periods, interest paid r% per period or i = r/100, so the amount of obligation can be given as ___. Option 1: A = R[((1+i)^n - 1)/i] Option 2: A = R[((1-i)^n - 1)/i] Option 3: A = R[((1+i)^n)/i - 1] Option 4: A = R[i^(n-1) - 1]

Answer: A = R[((1+i)^n - 1)/i]. Solution: Future value of an ordinary annuity (paid at end of each period) is A = R[((1+i)^n - 1)/i], where R is the periodic payment and i is the rate per period.

Applied Mathematics

Financial Mathematics

Easy

applied

Let us consider an annuity whose periodic payment is Rs. R payable at the end of each payment period for 'n' periods, interest paid r% per period or $i = \frac{r}{100}$ , so the amount of obligation can be given as _______.

$A = R\left[\frac{(1+i)^n - 1}{i}\right]$

$A = R\left[\frac{(1-i)^n - 1}{i}\right]$

$A = R\left[\frac{(1+i)^n}{i} - 1\right]$

$A = R\left[i^{n-1} - 1\right]$

✅ Correct Option: 1

Future value of an ordinary annuity (paid at end of each period) is $A = R\left[\frac{(1+i)^n - 1}{i}\right]$ , where R is the periodic payment and i is the rate per period.

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Let us consider an annuity whose periodic payment is Rs. R payable at the end of each payment period for 'n' periods, interest paid r% per period or i=r100i = \frac{r}{100}i=100r​, so the amount of obligation can be given as _______.

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CUET Mathematics Past Year Questions (Topic-Wise)

Let us consider an annuity whose periodic payment is Rs. R payable at the end of each payment period for 'n' periods, interest paid r% per period or $i = \frac{r}{100}$ , so the amount of obligation can be given as _______.