Mathematics for FinancePYQ Nov. 20Question 1441 of 422
All Questions

A five year annuity due has periodic cash flow of $₹ 100$ each year. If the interest rate is $8\%$ the future value of this annuity is given by:

Options

A$₹ (100) \times (\text{Future value at rate } 8\% \text{ for } 5 \text{ years}) \times (1.08)$
B$₹ (100) \times (\text{Future value at rate } 8\% \text{ for } 5 \text{ years}) \times (1 - 0.08)$
C$₹ (100) \times (\text{Future value at rate } 8\% \text{ for } 5 \text{ years}) \times (1 + 0.08)$
D$₹ (100) \times (\text{Future value at rate } 8\% \text{ for } 5 \text{ years}) \times (1/0.08)$
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option b$₹ (100) \times (\text{Future value at rate } 8\% \text{ for } 5 \text{ years}) \times (1 - 0.08)$

All Options:

  • A$₹ (100) \times (\text{Future value at rate } 8\% \text{ for } 5 \text{ years}) \times (1.08)$
  • B$₹ (100) \times (\text{Future value at rate } 8\% \text{ for } 5 \text{ years}) \times (1 - 0.08)$
  • C$₹ (100) \times (\text{Future value at rate } 8\% \text{ for } 5 \text{ years}) \times (1 + 0.08)$
  • D$₹ (100) \times (\text{Future value at rate } 8\% \text{ for } 5 \text{ years}) \times (1/0.08)$

Key Concepts to Understand

More Questions from Mathematics for Finance

Ready to Master Mathematics for Finance?

Practice all 422 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free