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A person started giving aside Rs. 10,000 each year for his child college education in a sinking fund the amount he will receive after 6 years. if the rate of interest is 10% per annum is : (Use (1.1)6=1.771(1.1)^6 = 1.771)

Solution

✅ Correct Option: 1

Sinking fund value: S=R⋅(1+i)n−1i=10000⋅1.771−10.10=10000⋅7.71=77,100S = R \cdot \frac{(1+i)^n - 1}{i} = 10000 \cdot \frac{1.771 - 1}{0.10} = 10000 \cdot 7.71 = 77{,}100.

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