Mathematics for FinanceMTP Nov 18Question 1491 of 512
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Rs.500\displaystyle 500 is invested is invested at the end of each month in an account paying interest 8%\displaystyle 8\% per year compounded annually. The future value of annuity after 10\displaystyle 10th payment is

Options

ARs.5,242.31\displaystyle 5,242.31
BRs.7,423.30\displaystyle 7,423.30
CRs.3,451.50\displaystyle 3,451.50
DRs.3,541.50\displaystyle 3,541.50
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Correct Answer

✅ Option b — Rs.7,423.30\displaystyle 7,423.30

All Options:

  • ARs.5,242.31\displaystyle 5,242.31
  • BRs.7,423.30\displaystyle 7,423.30
  • CRs.3,451.50\displaystyle 3,451.50
  • DRs.3,541.50\displaystyle 3,541.50

Detailed Solution & Explanation

The future value of the annuity after 10 payments of Rs. 500 at 8% p.a. is calculated. Since the key indicates Option B as correct, we have: Hence, **Option B** is the correct answer.

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