What is the future value of an ordinary annuity of Rs 1,000 per year for 2 years at 10% compound interest?
Answer and explanation
Correct answer: B. Rs 2,100
- Step 1: Future value = P x [(1 + i)^n - 1] / i.
- Step 2: 1000 x [(1.1)^2 - 1] / 0.1 = 2100.
Answer
Rs 2,100.
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